Calgro M3 secures R150 million combined facilities to fund their ongoing working capital requirements from Standard Bank in a sustainable finance format to expand integrated housing projects

Calgro M3 is a real estate development company specialising in integrated housing projects and memorial parks. Their developments encompass a range of housing options, including subsidised, social, grassroots affordable people’s (GAP) or first-home finance (FHF) and affordable housing, all within integrated communities that offer schooling and communal facilities.

These integrated communities are designed to foster a sense of belonging and provide residents with access to essential services, creating vibrant and sustainable living environments.

The bank acted in its capacity as lender and sustainability coordinator for this transaction, to provide the combined R150 million  facilities to fund their ongoing working capital requirements, structured in sustainable finance format. This is Standard Bank’s first short-term loan in the real estate sector and the first short-term loan in the Transaction Banking business executed in sustainable finance format.

The financing will allow Calgro M3 to accelerate the development of new housing units and expand its reach to underserved communities. A significant portion of these housing development units qualify as affordable housing as they are targeted towards reaching low-income households.

Calgro M3’s model offers homeowners affordable housing to improve their lifestyle by living in an integrated community and residing close to economic opportunities. This diverse mix of units allows Calgro M3 to deliver value-for-money homes in master-planned communities and lifestyle estates, reaching a wide spectrum of different market segments with a strong focus on closing the housing shortage gap.

By supporting Calgro M3, the bank is directly contributing to addressing the critical housing shortage in South Africa and fostering inclusive communities. This investment aligns with Standard Bank's commitment to sustainable finance and driving positive social impact across the continent, demonstrating our dedication to building a more equitable and prosperous future for all.