This €25M funding facility will allow 49,000 new low-income housing units to be built by 2023 in priority urban development areas. This funding includes a €10M sub-participation from AFD, Proparco’s parent company.
This is the first funding Proparco loans to Calgro M3, which focuses on large-scale integrated developments, real estate investments (rental units) and the development and establishment of private memorial parks. This is also Proparco’s first operation in the low-income housing sector, a development priority in South Africa.
“Of the €25 million, Proparco is mobilising on a sub-participation basis €10 million from AFD, our parent company. We are proud to be involved with Calgro M3, which is very much in keeping with the role AFD plays in the municipal and social housing sector in South Africa,” stated Denis Sireyjol, Regional Head of Proparco for Southern Africa & Indian Ocean.
“This will put the Calgro M3 in a favourable position to roll out our pipeline of developments, armed with working capital,” added Wikus Lategan, CEO of Calgro M3.