A Calgro M3 development. The group experienced delays because of social unrest, especially in Gauteng. Photo: Supplied

JOHANNESBURG - Listed property developer Calgro M3 Holdings said yesterday it had secured its first international funding, a facility for €25 million (R391.65m) on an unsecured basis for a period of six years, which would go a long way in underpinning the company’s growth strategy.

Chief executive Wikus Lategan said the group would continue to assess local and international markets to secure additional long-term instruments as well as renew expiring facilities.

“As we indicated before that the group wanted to raise 750m, but we are pleased with what we have been able to raise as it will be able to drive growth in the business,” Lategan said. The group’s core focus is on large-scale integrated developments, real estate investments (rental units) and the development and establishment of private memorial parks.

In the results for the six months to end August, Calgro reported 40.24% increase in revenue to R1 billion, up from R720m reported a year earlier. Lategan said the group was fortunate to have 11 out of 13 projects contributing towards revenue and profits, which reduced the impact of delays. We are also investigating the possible sale or exit of non-core strategic land parcels and projects,” he said.

During the period the group experienced delays because of social unrest, especially in Gauteng, with vandalism being experienced at almost all the sites. "The construction slowdown in the Western Cape due to the prevailing water shortage contributed to the difficulties experienced,” he added. Despite these challenges the group still managed to report good progress in some of its operations. It said out of 7473 houses that were under construction, 1057 were completed and handed over to their clients.

The group reported a decline of 26.72% in earnings per share to 47.71 cents a share, down from 65.11c while headline earnings per share declined by 26.74% to 47.71c, down from 65.13c as compared to the same period a year ago.

In the Integrated Residential Developments division, the business realised an increase of 42.5% in secured private sector sales while the market in which the group operates contracted by 11%.

In the Real Estate Investments (rental units), the group said the first 1372 units of the Phase 1 project in partnership with SA Corporate and AFHCO, consisting of 3852 units in total, are nearing completion with handover of the first tranche of units due before the end of February 2018 and most of the balance to be handed over in the first six months of the next financial year. The Memorial Parks business increased its sales by 41%.

Calgro shares fell 0.16% on the JSE yesterday to close at R12.62.