4 date: jan 11 - calgro m3 · group balance sheet inventories 234 945 651 266 392 715 260 115 196...

Version 4Date: Jan‐11

• Group structure• Background• Share Profile• Products and Market Definition• Business Model• February 2011 Financial Review• Projects• Integrated Development Concept

Agenda

Calgro M3 – Subsidiary Companies

Calgro M3 Holdings Limited

2005/027663/06

Calgro M3 Developments (Pty)

Ltd1996/017246/07

CM3 Randpark Ridge Ext 120 (Pty) Ltd2005/018284/07

MS5 Projects (Pty) Ltd 2004/014691/07

MS5 Pennyville (Pty) Ltd 2005/024397/07

PZR PennyvilleZamimphilo Relocation

(Pty) Ltd 2005/027240/07

PZR Fleurhof (Pty) Ltd 2007/0355790/7

Calgro M3 Land (Pty) Ltd

2005/027072/07

Hightrade-Invest 60 (Pty) Ltd

2005/027489/07

Aquarella Investments 265 (Pty) Ltd

2005/035305/07 (ASSOCIATE) –

JABULANI

Sabre Homes Projects (Pty) Ltd

2002/004007/07(ASSOCIATE) -JUKSKEI VIEW

CM3 Witkoppen Ext 131 (Pty) Ltd

2005/017717/07

Tres Jolie Ext 24 (Pty) Ltd

2007/019498/07

Ridgewood Estate (Pty) Ltd

2007/018365/07

Fleurhof Ext 2 (Pty) Ltd2005/027248/07 (ASSOCIATE)

Business Venture Investments No 1221

(Pty) Ltd2007/023449/07

Business Venture Investments No 1244

(Pty) Ltd2007/025990/07

Clidet No 1014 (Pty) Ltd(Pty) Ltd

2009/021563/07(ASSOCIATE) -SUMMERSET

Calgro M3 Project Management (Pty) Ltd

2007/030313/07

CTE Consulting (Pty) Ltd

2007/030310/07

• Calgro M3 is an established property development company with a 15 year track record(established in 1995), specialising in delivering truly integrated development projects thatadhere to Government’s BNG principles;

• Calgro M3 has a proven track record in the RDP, Rental and Social Housing market with itshighly successful Pennyville integrated project and is currently in the process of developingof two of City of Johannesburg’s premier integrated projects namely Fleurhof and SouthHills, consisting of respectively 9,602 units and 4,217 units;

• Calgro M3 has in addition to it’s Gauteng based projects, successfully secured theScottsdene Integrated project in Cape Town consisting of 2,247 units;

• Calgro M3 is in addition to the “Low Income Market”, a market leader in the “mid to high”income residential market and being one of the first to implement “renewable energy”measures within our projects;

• Calgro M3 listed on the JSE Alt‐X in November 2007 and was the first company to list adebt programme on Yield‐X in 2008;

• Calgro M3 is a Black empowered company with 25.12% BEE shareholding.

Calgro M3 – Background

• Development partners include:

City of Johannesburg, Department of Housing

Gauteng Provincial Government, Department of Housing

City of Cape Town, Department of Housing

Johannesburg Social Housing Company (JOSHCO)

• Finance partners include:


• Development partners include:

City of Johannesburg, Department of HousingGauteng Provincial Government, Department of HousingCity of Cape Town, Department of HousingJohannesburg Social Housing Company (JOSHCO)

• Finance partners include:

RMBFNBStandard BankNedbankABSAI H S (International Housing Solutions)DBSA (Development Bank of South Africa)NHFC (National Housing Finance Corporation)


Shareholding Profile

43%

25%

32%

Management Freefloat ‐ BEE Freefloat

Overview ‐ Products and Market Definition

Up to R300 000

Up to R 500 000

R501 000 up toR1 800 000+

Applicable subsidy

Integrated

develop

men

ts

Full title and

sectional title

Identify project

Due diligence –market research,

viability studies, etc

Acquire land, development funding, etc

Township Establishment

Marketing & Sales

Infrastructure (bulk & link, internal)

Transfers to end-users, etc

Top-structure construction

Business Model

Turnkey Developer

Infrastructure Projects – Pennyville

Pennyville project – 2,752 units:• Roads and storm water reticulation;• Water and sewer reticulation;• Electrical reticulation;• Pedestrian bridges;• Pennyville substation (electricity)

Infrastructure Projects – Fleurhof

Fleurhof project – 9,602 units:• Roads and storm water reticulation;• Water and sewer reticulation;• Electrical reticulation;• Water reservoir;• Extension of Westlake Road – linking Sowetowith northern suburbs;

• Shared substation with Pennyville.

Sep‐09

Feb‐10

Phase 1

Phase 2

Increase

• Revenue: 49.34 %• Headline Earnings: 276.39 %

• Cash Generated From Operations: 2001.41 %• Cash On Hand: 197.41 %

Decrease• Borrowings: 6.37 %

Financial Review

Financial Highlights

‐

50 000 000

100 000 000

150 000 000

200 000 000

250 000 000

300 000 000

350 000 000

400 000 000

450 000 000

500 000 000

2008 2009 2010 2011

Debt vs Equity

Debt Debt excluding Trade payables Equity

Financial Highlights

‐

50 000 000

100 000 000

150 000 000

200 000 000

250 000 000

300 000 000

350 000 000

400 000 000

450 000 000

500 000 000

2008 2009 2010 2011

Current assets vs current liabilities

Current assets Current assets excluding inventory Current liabilities Current liabilities excluding liabilities relating to inventory

Financial Review

2011 2010 2009Group income statementRevenue 281 849 367 188 725 584 233 054 190 Gross profit 35 024 294 27 667 276 50 849 201 Gross profit % 12.43% 14.66% 21.82%Profit before tax 15 310 618 16 199 783 7 886 397 Basic earnings per share 13.34 12.19 4.74 Headline earnings per share 13.48 (7.64) 16.32 Group balance sheetInventories 234 945 651 266 392 715 260 115 196 Construction contracts 40 646 024 32 217 439 64 389 035 Net cash position 10 913 019 (11 202 838) 14 751 364 Retained income 74 652 237 57 696 796 42 208 687 Borrowings 154 261 721 164 029 568 187 307 050 Trade and other payables 44 329 083 39 862 596 64 779 323 Group cash flows

Cash generated from operations 68 474 479 -140 184 68 474 479 Tax paid (11 764 586) (557 317) (217 696) Net cash from operating activities 24 181 500 958 979 68 239 760 Net cash from investing activities 9 221 774 (4 128 137) (30 666 214) Net cash from financing activities (11 287 417) (22 785 044) (20 625 560) Net (decrease)/increase in cash and cash 22 115 858 (25 954 202) 16 947 986 Cash and cash equivalents and bank overdraft at the (11 202 838) 14 751 364 (2 196 622) Cash and cash equivalents and bank overdraft 10 913 019 (11 202 838) 14 751 364

Pennyville:• Successful completion of the project and translating experience and lessons learnt on

the project into the Fleurhof and Jabulani developments;

Fleurhof:• Completing the installation of infrastructure for Ext’s 2 and 3, and receiving a section 82

certificate for Ext 2 after successfully handing over the services to the Municipal OwnedEntities (MOE’s);

• Completing the first units aimed at the bonded market and handing units over to end‐users;

• Entering into bulk sale agreements for social housing units for Madulamoho;

Jabulani:• Breaking ground with the installation of civil infrastructure for the Hostels and

commencing construction of top‐structures;• Entering into bulk sale agreements for rental units for Diluculo in the CBD project;• Breaking ground with the installation of services on the CBD project;

Non – Financial Highlights

Jukskei View:• Receiving a section 82 certificate and breaking ground on the construction of houses;

City of Cape Town:• Expanding outside of Gauteng for the first time through the award to the Group of a

project developing land on behalf of the City of Cape Town into an integrateddevelopment;

Bloemfontein:• Successfully concluding a joint venture (“JV”) agreement to construct social housing units

for the Free State Social Housing Company (FRESHCO) in Bloemfontein;

Development Finance:• Securing development finance in excess of R400 million for projects in a recovering

market, enabling the Group to double construction revenue in the last six months of theyear.

Non – Financial Highlights

Project Location Type of project Number of units RDP units

Social housing &

GAP

Affordable housing

Estimated gross revenue

Fleurhof Johannesburg South Integrated 9 602 2 822 4 864 1 916 R 2 280 000 000

Jabulani CBD Soweto, Johannesburg

Res 3 multi‐storey –GAP and rental 4 199 0 4 199 0 R 1 070 000 000

Jabulani Hostel Development

Soweto, Johannesburg

RDP & Social Housing (CRU) 500 400 100 0 R 118 000 000

Mabopane Pretoria North Affordable Housing 202 0 0 202 R 70 700 000

Jukskei View Midrand Affordable Housing 715 0 0 715 R 357 500 000

Belhar Cape Town GAP, student accommodation 3 600 0 3 600 0 R 1 030 000 000

South Hills Johannesburg Integrated 4 217 1 702 1 485 1 030 R 1 336 000 000

Scottsdene Cape Town Integrated 2 247 558 1 475 214 R 549 771 000

Brandwag Bloemfontein Social Housing 1 050 0 1 050 0 R 262 500 000

26 332 5 482 15 298 4 077 R 7 074 471 000

21% 58% 15%

Existing Projects – Integrated & Low to Medium Income Residential

Completed Projects – Mid to High Income Residential

Calgro M3 – Integrated Development Concept

Pennyville Ext 1 (Johannesburg South)Integrated / Mixed Use Development Project

Finance partner/s:

RDP/BNG (freehold semi‐detached) 1,000 units

GAP, social and rental housing (3 & 4 storey walk‐ups family units) 1,400 units

Affordable housing (freehold freestanding family units) 0 units

RDP/BNG multi‐storey (3 & 4storey walk‐ups family units) 352 units

Pennyville Integrated Development – 2,752 units(New Canada Road ‐ Johannesburg South)


New Canada Station

BRT Route

School

Bonded (GAP) or rental units

Freestanding RDP units Social Housing units 3 Storey walk‐up RDP units 2 Storey walk‐up RDP units


Pennyville Integrated Development(New Canada Road ‐ Johannesburg South)

Fleurhof (Johannesburg South)Integrated / Mixed Use Development Project

Finance partner/s:

Fleurhof Integrated Development – Unit Typology and Mix(Main Reef Road ‐ Johannesburg South)

RDP/BNG (freehold semi‐detached) 0 units


Affordable housing (freehold freestanding family units) 1,916 units

RDP/BNG multi‐storey (3 & 4storey walk‐ups family units) 2,822 units

Fleurhof Integrated Development – 9,602 units(Main Reef Road ‐ Johannesburg South)

Main Reef Rd - ± 9.8 km’s from Jhb CBD

Soweto (Meadowlands)

Existing Fleurhoftownship

Fleurhof Integrated Development – Phase 1(Main Reef Road ‐ Johannesburg South)

Jabulani CBD (Soweto, Johannesburg)GAP, Social & Rental Housing Project

Finance partner/s:

Jabulani CBD Development – Unit Typology and Mix(Main Reef Road ‐ Johannesburg South)





New 300 bed hospitalNew 300 bed hospital

Jabulani MallJabulani Mall

Residential– ph 2 (parcel C)Residential– ph 2 (parcel C)

Residential – ph 3 (parcel A)Residential – ph 3 (parcel A)

Jabulani Hostel DevelopmentJabulani Hostel Development

Residential – ph 2 (parcel K)Residential – ph 2 (parcel K)

Performing Arts TheatrePerforming Arts Theatre

Jabulani CBD Development – 4,199 units (Bolani Road, Soweto)

(parcel B)

Jabulani CBD Development – Breaking Ground!

Jabulani Hostels (Soweto, Johannesburg)Hostel Re‐Development Project

Finance partner/s:

Jabulani Hostel Development – Unit Typology and Mix – Phase 1(Main Reef Road ‐ Johannesburg South)


CRU subsidized rental housing (3 & 4 storey walk‐ups family units) 100 units



Jabulani Hostel Development– 1,638 units (Bolani Road, Soweto)

Existing hostel dwellings

Phase 1

Jabulani Hostel Development– 1,638 units (Bolani Road, Soweto)

South Hills (Johannesburg South)Integrated Development Project

(Joint Venture with )

Finance partner/s:

South Hills Integrated Development – Unit Typology and Mix( Johannesburg South)



Affordable housing (freehold freestanding family units) 1,030 units

RDP/BNG multi‐storey (3 & 4storey walk‐ups family units) 1,702 units

South Hills Integrated Development – 4,217 units (South Hills, Jhb South)

The SiteRosettenville

JHB CBD

Turfontein Race Course

Hospital View (Johannesburg South)Integrated Development Project

Finance partner/s:

Hospital View Integrated Development – Unit Typology and Mix( Johannesburg South)





Hospital View Integrated Development – 3,200 Units( Johannesburg South)

Jukskei View (Midrand)Affordable Housing Project

Finance partner/s:

Jukskei View Development – Unit Typology and Mix(Midrand)


GAP, social and rental housing (3 & 4 storey walk‐ups family units) 0units



Jukskei View Development – 715 Units(Midrand)

Entrance Gate

Brandwag (Bloemfontein)Social Housing Project

(Joint Venture with Kopano)

Finance partner/s:

Brandwag Social Housing Development – Unit Typology and Mix(Bloemfontein)





Brandwag Social Housing Development – 1,050 Units(Bloemfontein)

Scottsdene (Cape Town)Integrated Development Project

Finance partner/s:

Scottsdene Integrated Development – Unit Typology and Mix(R101 – Scottsdene, Brackenfell)


CRU (subsidized rental), GAP, social and rental housing (3 & 4storey walk‐ups family units)

1,487 units



Scottsdene Integrated Development – 2,247 units(Cape Town)

Scottsdene Integrated Development – Focus Area

Scottsdene – Sectional Title, 3&4 Storey Walk‐Up‘s GAP, Rental & Social Housing ,& Affordable Housing

La Vie Nouvelle (Fourways, Johannesburg)Retirement & Lifestyle Estate Project

Finance partner/s:

La Vie Nouvelle Retirement and Lifestyle Estate – 388 units(Broadacres, Fourways)

Summerset Place (Midrand)Sectional Title Multi‐Storey and Freestanding Mid‐

Market Housing Project

Finance partner/s:

Summerset Place – 280 units(Midrand, Gauteng)

Typical UnitsIntegrated Projects

Typical Unit Designs – Multi‐Storey RDP/BNG Units

Pennyville Project Pennyville Project

Pennyville Project

Typical unit size ‐ 40m² ‐variations of 2, 3 & 4 storey walk‐ups

Typical Unit Designs – Freestanding RDP/BNG Units

Pennyville Project

Pennyville Project

Typical unit size ‐ 40m² ‐variation of freestanding and semi‐detached units

Typical Unit Designs – Multi‐Storey GAP, Social & Rental Units

Typical unit sizes varies from 40m² to 85m² ‐ all family units ‐variations of 2, 3 & 4 storey walk‐ups

Social Investment – Pennyville Créche, etc

Pennyville Project – Community

4 date: jan 11 - calgro m3 · group balance sheet inventories 234 945 651 266 392 715 260 115 196...

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