Residents demand action as Elsies River housing project remains abandoned
This property could potentially house more than 200 people.
Image: Ayanda Ndamane
A stalled housing development in Elsies River has become the subject of a legal dispute and growing frustration among residents, as court documents reveal a messy fallout between a Cape Town contractor and a developer over an incomplete R126 million project.
According to the documents, Good Hope Plasterers CC, trading as Good Hope Construction (GHC), entered into an agreement with E-Junction Property Developers (EJPD) to construct the Stay Junction development—a 276-unit mixed-use residential project in Elsies River. But years later, the site remains abandoned and partially built, as the two parties battle over financial guarantees and allegations of fraud and non-performance.
GHC approached the Western Cape High Court in an attempt to stop EJPD from calling up two guarantees, arguing that they were tied to a 2020 contract which EJPD now disavows. GHC claimed the guarantees were fraudulently triggered.
EJPD has denied these claims, counter-alleging poor workmanship and delays by the contractor. In a rare twist, the insurer also sided with GHC, alleging the guarantees were issued based on misrepresentation. GHC later withdrew its court application, but EJPD's counterclaim remains before the court.
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National Prosecuting Authority spokesperson Eric Ntabazalila confirmed the matter is a civil case. 'It doesn't look like a matter we would be involved in. It's a civil matter – two parties taking each other to court. No prosecution,' he said, adding that only the involved companies or their legal teams could comment further.
The Cape Argus previously reported that the development was listed for auction, but no information has been made available as to whether it was sold. The auction advert described the four-storey building as consisting of 100 unsectionalised apartments and ground-floor retail space. It was offered with an opening bid of R45 million and a projected rental income of R850,000 per month.
Elsies River ward councillor Christopher Jordaan said the situation is a major missed opportunity for the area.
'We have massive overcrowding and so many backyard dwellers. Why doesn't the City step in?' he asked. 'At the moment it's abandoned—some windows are broken—and there's growing concern it could become a crime hotspot.'
The busy Halt Road in Elsies River. Residents believe the building can boost their local economy
Image: Henk Kruger
Jordaan said the project is a key part of the City's broader Voortrekker Road Corridor development plan.
'If the place was completed and fully let, it would be a major boost to the Elsies River CBD and local economy. Right now, it's an eyesore,' he said.
He proposed that the City buy the property or hand it over to a social housing agency to manage or rent out.
'We've had several discussions in our caucus and sub-council about this. The plans were approved, typologies were presented, but there's been no movement,' Jordaan said.
'I want this property to benefit our community. It was supposed to be low-cost housing. It should not be allowed to go to waste.'
Theodore Marais of the Riverton Residents Association echoed Jordaan's concerns.
'Although we initially opposed the development due to a lack of engagement, we afterward agreed. Now it's an abandoned structure that has the potential of servicing the community's needs.
'We want to know what type of oversight the City has over projects? Why can't they intervene? Buy the property and put it to use,' Marais said.
When the City was approached with the community's concerns, they advised the media to contact the owners.
'The property is privately owned,' the City said.
Weekend Argus tried to reach out to the numbers provided on Good Hope Properties website including the development phone numbers, which goes unanswered.
The one number that was answered, the sales agent explained that their number was used on the website without consent and that they never worked with the company.
An email was also sent through the 'contact us' request option but after four days no response was given.
tracy-lynn.ruiters@inl.co.za
Weekend Argus
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