PIC invests in Divercity, its first investment in the Multifamily Residential sector

This strategic investment will enable further growth in affordable housing, supporting Divercity's ambitions to develop an additional 2,500 rental units. This partnership aims to address South Africa’s critical housing shortage by delivering high-quality, well-located affordable housing.

Multifamily refers to residential rental properties such as apartment buildings that 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 growth potential. The study conducted by global property researcher MSCI, reviewed five years of investment decision-making data on the Multifamily sector. The study shows that the sector delivers 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. This investment signifies growth in the multifamily asset class," said Carel Kleynhans, CEO of Divercity Urban Property Group.

“As South Africa confronts a critical housing shortage, the PIC is committed to investments that not only deliver sustainable financial returns to its client portfolios, but also investments that drive impactful socio-economic outcomes in the country,” said Kabelo Rikhotso, the PIC’s Chief Investment Officer. “Our partnership with Divercity aligns with our mandate to support economic transformation and upliftment, creating accessible, quality affordable housing in strategic urban locations. 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.”

The Public Investment Corporation (PIC) is the largest asset manager on the African continent, wholly owned by the government of the Republic of South Africa, represented by the Minister of Finance.

Established in 1911 as the Public Debt Commissioners, the PIC was corporatised on 1 April 2005 in accordance with the Public Investment Corporation Act, 2004. PIC’s clients are mostly public sector entities, which focus on provision of social security. Amongst these are the Government Employees Pension Fund (GEPF), Unemployment Insurance Fund (UIF), Compensation Commissioner Fund (CC), Compensation Commissioner Pension Fund (CP) and Associated Institutions Pension Fund (AIPF).

The PIC runs a diversified investment portfolio, which comprise of multiple asset classes. These include listed equities, real estate, capital market, private equity and impact investing. Through listed investments, the PIC controls over 10% of the Johannesburg Stock Exchange (JSE) and has direct and indirect exposure to almost all sectors of the South African economy. The Corporation has a mandate to invest in the rest of the African continent and beyond. Over and above generating financial returns for clients, through its impact-investing programme, the PIC seeks to generate social returns by investing in projects that ensure inclusive growth. The PIC supports the United Nations’ Sustainable Development Goals and considers environmental, social and governance issues in all its investments.

Divercity is a for-profit property group setting a new standard for socially responsible, environmentally sustainable and economically productive urban development, while delivering attractive returns for its institutional investors. Divercity invests in high density urban precincts. These precincts are well located, rich in amenities, and weighted towards affordable rental housing. They offer low- and middle-income households the opportunity to live in sustainable urban environments, close to where they work and with access to the essential amenities required to get ahead in life. Further information is available on Divercity’s website: https://www.divercity.co.za/.

Divercity Urban Property Group

Angela Di Giovampaolo on 083 453 6668 or angie@catchwords.co.za