A nearly completed student-housing project at the University of Limpopo in South Africa remains behind security gates after more than a year, leaving thousands of students without the accommodation planned for the site. The development, valued at R1.3 billion, is at the center of a legal dispute in the High Court in Pretoria.
The UniLim student housing precinct was designed to provide almost 3,000 beds through a public-private partnership funded by the Public Investment Corporation, which manages public-sector pension funds. The prolonged delay has contributed to more than R100 million in lost revenue, according to the Sunday Times.
Payment dispute holds up commissioning
In April, private developer K-SL Student Hotel asked the court to order the immediate payment of more than R44 million in overdue payment certificates and professional fees. K-SL director Gregory Mofokeng said in the application that an administrative block had effectively stopped the project's final commissioning.
The dispute also threatens the contracts of Raubex Building, the project's primary contractor, and the professional consultants. If those contracts end, the joint venture would have to bring in another contractor to complete the work. That process could add delays and further costs, Mofokeng said.
“Another consequence of termination is that the joint venture will have to appoint another contractor to finish the job. The appointment process alone will take a long time, cause further unnecessary delays to the finalisation of the project and incur millions of rands in wasted expenditure.” — Gregory Mofokeng, director of K-SL Student Hotel
A pension-funded housing plan
The development was conceived in December 2017 as part of a broader plan to create 10,000 student beds across Limpopo province through a co-ownership joint venture involving K-SL and the PIC. Under the financing structure described in the court application, the PIC invested R1.2 billion in pension funds for a 70% equity stake.
The project was intended to expand secure housing for students while using public investment to support social infrastructure. Its unfinished status has instead left the planned rooms unavailable and placed the funds committed to the development at the center of the court proceedings.
- The precinct is reported to be 98% complete.
- The planned development includes nearly 3,000 student beds.
- The payment dispute involves more than R44 million in certificates and professional fees.
Mofokeng said a termination would also require the construction team to leave the site, a step he estimated would cost more than R3 million. He described that expense as avoidable public spending while the court dispute over the project's outstanding payments continues.
