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Student accommodation project halted as contractor faces liquidation

14th September 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Completion of the 17-storey Braamfontein South Point student accommodation project, in Jorissen street, in Johannesburg’s Central Business District, will most likely be delayed by a year and only be ready in time for the start of the 2021 academic year, South Point CFO Johan Wheeler told Engineering News this month.

Construction on the building, which will provide 1 200 beds for the University of the Witwatersrand students, has been stopped, as the main contractor, Liviero Building, is likely to be liquidated.

Only two of the 17 storeys have been completed.

The project, valued at about R276-million, was initially expected to be completed in time for the 2020 academic year.

South Point is uncertain as to when construction will resume at the site.

Wheeler said South Point was reviewing its legal options.

“Looking ahead, these steps would most likely entail a termination of the contract and putting the project out to tender again and, upon completion of that process, the appointment of a new principal construction contractor,” he noted.

Liviero entered into business rescue in July, as a result of financial difficulties, Wheeler said.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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