R11bn unfinished Montrose Mega City Development housing ghost town
The Montrose Mega City Development, which was once touted as a large-scale solution to the province's housing backlog, has been inactive since January 2024.
According to the Gauteng Department of Human Settlements (GDHS), the project was halted following the termination of its contract with SCM Developments, the appointed turnkey developer. The department cited 'financial difficulties leading to its liquidity'. The government planned to build 5,600 housing units during the project's first phase.
When Daily Maverick asked about the total amount spent on both phases of the development to date, GDHS spokesperson Terry-Ann van Eck, speaking on behalf of MEC Tasneem Motara, declined to provide figures, although reports suggest R11-billion was spent.
'As the development was in its first phase at the time of termination, detailed financial information on expenditure cannot be disclosed without a formal application under the Promotion of Access to Information Act (PAIA).'
In response to further queries from Daily Maverick about whether there are any plans to repair or complete the housing units, the department said: 'The Department is actively engaged in negotiations with the landowner to purchase the land outright. This acquisition will enable the Department to take over and continue the development. Upon successful acquisition, a procurement process will be initiated to appoint a new developer to resume and complete the project as originally intended.'
It added that it had received 'guidance from the Provincial Treasury on securing the site. A professional security company has now been appointed on the property to prevent further illegal activities, including vandalism and unauthorised access,' said Van Eck.
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Do you have more information about the story? Please send us an email to [email protected] or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.
