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Stellenbosch University said the damage caused by a fire on the campus on Monday night was "quite extensive".
It is understood that the fire at Huis ten Bosch residence broke out at around 19:00, leading to the evacuation of 164 residents. It was contained more than an hour later at 20:30.
The university said the roof above eight rooms on the third floor was destroyed and there was water damage to a large part of the residence.
"It seems as if Huis ten Bosch may be unserviceable as a residence for the rest this semester," the university said on its website.
Academic commitments for the affected students have been halted and are expected to resume on Thursday.
The residence placement office on the campus has relocated 60 of the students and about 100 students are said to be with family and friends.
The university has offered counselling to affected students and has made a bank account available for donations for the victims, who lost belongings in the blaze.
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