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

The Public Investment Corporation (PIC), on behalf of its client, has made a landmark investment in Divercity Urban Property Group, South Africa’s leading investor in affordable rental housing. This marks PIC’s first investment in the multifamily residential rental 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 addresses South Africa’s critical housing shortage by delivering high-quality, well-located, affordable housing.

Multifamily refers to residential rental properties, such as apartment buildings, 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 to investors and 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.”