By Terri-Ann Brouwers.
The Public Investment Corporation (PIC) has announced an investment in Divercity Urban Property Group, marking its first foray into the multifamily residential rental sector.
The PIC says the aim is to help address South Africa’s critical housing shortage by supporting Divercity’s plans to develop an additional 2 500 affordable rental units.
Multifamily properties such as apartment buildings are owned and managed by institutional landlords.
Recent research sponsored by Divercity, Absa, and the South African Multifamily Residential Rental Association (Samrra) highlighted the sector’s potential for growth, showing consistent performance, low volatility, and predictable returns.
“As South Africa faces an acute need for housing, well-located, well-managed affordable rental portfolios offer immense value for both investors and our society,” said Carel Kleynhans, CEO of Divercity Urban Property Group, one of the developers of Barlow Park in Sandton.
‘This investment signifies growth in the multifamily asset class.”
The PIC, Africa’s largest asset manager, noted that it is committed to investments that generate both financial returns and positive socio-economic outcomes. “Our partnership with Divercity aligns with our mandate to support economic transformation and upliftment, creating accessible, quality affordable housing in strategic urban locations,” says PIC chief investment officer Kabelo Rikhotso.
“By investing in the multifamily rental sector, we’re contributing to a resilient, inclusive housing market that offers real value to South African communities and to our stakeholders.”