Elsies River housing project remains abandoned

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.

- TRACY-LYNN RUITERS

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.