KDC Holdings (KDCH) has requested technical assistance and support from the Kholoane Development Corporation with regard to the procurement of suitable land in and around Gauteng Province, with a further appointment of professional teams to execute the same project. KDC, in collaboration with the Gauteng Department of Local Government and Housing (GDoLG&H) and Professional Resource Teams (PRT) has completed preparation for the redevelopment of the five hostels in Soweto. The hostel redevelopment programme is nationally executed under the Community Residential Units (CRU) policy. Through this interaction, KDC saw a need to extend their project management services into funding procurement, whereas KDC through KDCH would then form a joint partnership with GDoLG&H or City of Joburg as implementing agents for the hostel redevelopment programme. The five hostels whereas KDC is current providing project management services, are Jabulani, Mapetla, Nancefield, Lifateng and Dobsonville. The scope of the five hostels redevelopment is inclusive of the demolishing of existing structures and construction of 8341 residential units with related municipal infrastructure.

The City of Joburg is the land owners of all five hostels and has granted GDoLG&H permission to finance the planning processes. The development rights have not as yet being signed-off by the CoJ since it was expected of the GDoL&H to complete the planning processes first. The approach applied by the CoJ in not committing to the Land Availability Agreement earlier, was instigated by the unfortunate events of development implemented by GDoLG&H on similar projects within Soweto. With all the project planning and design completed and approved by CoJ, JRA, Joburg Water and other approving authorities, it is correct to submit a request for development rights from CoJ. The same rights could only be granted upon confirmation of funding, whereas a financial model will have to be agreed upon for accommodation of various mixed tenure. The capital costs of the hostel redevelopment have been costed at R3.3 billion.

KDC was further requested by KDCH in initiating various private developments in Rietfontein and Grootfontein. The magnitude of these developments is inclusive of 46 440 mixed type residential units, commercial, retail, recreation, education and upgrading of bulk infrastructure services. The two projects, Rietfontein and Grootfontein, are currently owned by private individuals and KDCH through its subsidiaries have entered into purchase agreements. The capital cost of these private development initiatives is R53,2 billion. The capex is inclusive of top structure construction but inclusive of land procurement, feasibility studies, design and construction of engineering infrastructure. The business case for the private development is at a development stage, whereas only preliminary precinct studies are completed.

KDC is further engaged with Arcus GIBB, whereas the team (called GIBB PSP) has been appointed by DBSA to execute completion of feasibility studies for the revitalization of the two hospitals in Gauteng. The two hospitals under study include OR Tambo Memorial and Sebokeng. The two hospitals have been included in this submission due the fact that DBSA is expecting involvement of private investors into the design, construction and operations of the hospitals. It is assumed that each hospital could require a capex of R1.6 billion and R800 million respectively for the revitalization. This could make a total of R2.4 billion for both hospitals. Our team has been appointed to carry-out feasibility studies with a further engagement in planning, design, construction supervision and operations management of the two hospitals.

The final business case will focus a collection (group) of assets required for the effective and efficient health service delivery and functionality of the hospital. Typically, the assets consist of the physical infrastructure, fixtures, fittings, service systems in variety of construction materials and systems. A number of healthcare specialists have been added to expand the PSP GIBB.