Divercity Urban Property Group, a leading South African platform dedicated to affordable rental housing, has secured a landmark R550 million investment led by 27four, a prominent South African investment manager, alongside Proparco, the French development finance institution, and reinvestment from existing shareholders. This strategic co-investment will accelerate Divercity’s mission to expand access to quality, affordable housing in high-density, centrally located urban precincts across South Africa.
The majority of affordable housing in South Africa remains on the urban periphery, perpetuating spatial segregation and limiting access to economic opportunities and essential amenities. Divercity’s innovative approach addresses these challenges by developing sustainable, amenity-rich precincts close to business centres, directly supporting government priorities and recommendations from Harvard University’s Growth Lab to promote inclusive urban growth.
Mardé van Wyk, Principal at 27four, stated, “As South African investors, we are painfully aware of the critical shortage of quality and well-positioned affordable accommodation in our cities. We are excited by the innovative approach of Divercity to this perennial challenge and are pleased to be able to fund their expansion”.
The investment will enable Divercity to develop their urban development model. This initiative also supports energy-efficient building programmes and aims to achieve several sustainable development goals, including job creation and combating gender inequality, with women making up around half of Divercity’s tenant base.
Carel Kleynhans, CEO of Divercity, commented, “This significant investment in Divercity will enable us to develop over 2,500 new apartments. This helps us to demonstrate the impact and commercial viability of this economically productive, sustainable and fundamentally empowering urban development model”.
This co-investment marks a significant step toward reversing decades of spatial exclusion and building a more inclusive, sustainable urban future for South Africa.
For more information about 27four Investment Managers or Divercity, please contact Media Relations 27four using privatemarkets@27four.com or read here.