A R25bn housing project unveiled by President Cyril Ramaphosa in 2020, as a key strategic development between government and the private sector to create jobs and provide affordable housing, has slowed while government seeks funding for it.
Mooikloof Smart City in the east of Pretoria was planned to yield 15,000 sectional title apartments. The development has plans for a 20,000m² shopping centre, two schools, a community centre with soccer fields, children’s playground and pool. The entire development is worth about R25bn and was expected to create more than 50,000 jobs.
Government committed to provide funding for bulk infrastructure but did not deliver on time, causing delays in the process as the developer had to come up with finances to get the project going.
The project was launched at R499,000 per unit in 2020 in an area dominated by properties worth millions of rand.
President Ramaphosa launched the private sector project, owned by Balwin Properties, in October 2020 after it was gazetted as a strategic project for government.
At the launch, he said the project would address the issue of the missing-middle housing, which is people who earn too much to qualify for fully subsidised housing but do not earn enough to get mortgage.
“But by far the most important aspect of this catalytic project is its contribution to inclusionary housing development. In the inaugural state of the nation of the sixth administration, I outlined the seven priority areas that will guide the work of government. Among the priority areas mentioned was spatial integration, human settlements and local government,” Ramaphosa said.
“This development has all the key features of spatial integration. It is located in one of the most sought-after addresses in the City of Tshwane, with some of the highest average house prices. It is a nodal development giving residents and tenants easier access to vital transportation corridors.
“The collaboration of the three spheres of government has made the project possible.”
According to Balwin Properties, government had committed to provide R1.45bn worth of infrastructure but had not delivered.
To date, a large number of apartments at ‘Greenkloof’ phase 1 have been sold. We expect the first homeowners to take occupation in the fourth quarter of this year.
— Balwin Properties CEO Steve Brookes
Balwin Properties CEO Steve Brookes said the company had to spent more than R300m on bulk infrastructure.
“To date, a large number of apartments at ‘Greenkloof’ phase 1 have been sold. We expect the first homeowners to take occupation in the fourth quarter of this year,” he said.
Public works minister Sihle Zikalala committed earlier this year to meet the developer to speed up the project.
Brookes confirmed that the meeting did take place but did not divulge what action was agreed on.
“Yes, a constructive meeting was held, and the department is considering various avenues,” he said.
Brookes said bulk infrastructure projects under way included the widening and upgrade of Garsfontein Road, installation of new water and sewer lines, a new water pump station and reservoir and on-site electrical reticulation.
“The rate of sales determines the rate of construction, but based on current demand, a mega-project such as this will take about 10-15 years to develop to completion,” Brookes said.
So far, 126 units have been sold.
Public works did not respond to questions on its failure to provide funding for bulk infrastructure and the outcomes of the meeting it held with Balwin Properties.
The Gauteng department of roads and transport, which is to contribute to the project by enlarging Garsfontein Road, which connects Mooikloof Smart City to the N1 to Polokwane and Johannesburg, said it had started planning for the development.
Garsfontein Road has to be widened to meet the traffic influx from the increase in motor vehicles flowing from the Mooikloof Smart City.
Spokesperson for the roads department Lesiba Mpya said the funding for the project would be split between the department (57.9%) and the City of Tshwane (42.1%) as per agreement signed in October 2019.
Mpya said most of the planning had been done. So far more than R6m had been spent on consultancy costs, design and tender documents.
“Gauteng department of roads and transport is ready to go out to tender as soon as the budget request has been approved, which should be middle of November 2023,” Mpya said.
The City of Tshwane said it had started looking for funding to help it provide bulk infrastructure for the development.
Spokesperson Lindela Mashego said: “The city through Enterprise Performance Management Unit (EMPU) had engagements with Infrastructure South Africa (ISA) and Development Bank of Southern Africa (infrastructure fund) to unlock the development strategic urban developments (SUDs) in the city.
“On September 12 2023, the city invited the developers of SUDs (including Mooikloof Smart City) to present progress on projects and challenges with bulk infrastructure.
“The City of Tshwane, ISA and IF are pursuing different funding options for bulk infrastructure to unlock some of SUDs, including land development applications,” said Mashego.
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