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<\/a>The Public Investment Corporation (PIC) has invested in the Divercity Urban Property Group, which is one of the developers of Barlow Park in Sandton. <\/p>\n\n\n\n
The PIC said that the landmark investment into Divercity, which is focused on the affordable rental housing market, is its first push into the multifamily residential rental sector.<\/p>\n\n\n\n
The investment will allow for further growth in affordable housing, supporting Divercity’s ambitions to develop an additional 2,500 retail units. <\/p>\n\n\n\n
The partnership also aims to address South Africa’s critical housing shortage by delivering high-quality and well-located affordable housing. <\/p>\n\n\n\n
Multifamily properties refer to residential buildings such as apartment buildings that are owned and managed by institutional landlords. <\/p>\n\n\n\n
Research sponsored by Divercity, ABSA and the South African Multifamily Residential Rental Association (SAMRRA) showed that the sector has growth potential. <\/p>\n\n\n\n
The study, which was done by the global property researcher MSCI, showed that the sector delivers consistent performance, low volatility, and predictable returns.<\/p>\n\n\n\n
\u201cAs South Africa faces an acute need for housing, well-located, well-managed affordable rental portfolios offer immense value for both investors and our society.” <\/p>\n\n\n\n
“This investment signifies growth in the multifamily asset class,” said Carel Kleynhans, CEO of Divercity Urban Property Group.<\/p>\n\n\n\n
Kabelo Rikhotso, the PIC\u2019s Chief Investment Officer, said that South Africa faces a critical housing shortage. <\/p>\n\n\n\n
Rikhotso added that the PIC looks for investments that not only deliver consistent returns but also investments that drive impactful change. <\/p>\n\n\n\n
\u201cOur partnership with Divercity aligns with our mandate to support economic transformation and upliftment, creating accessible, quality affordable housing in strategic urban locations,” said Rikhotso. <\/p>\n\n\n\n
“By investing in the multifamily rental sector, we\u2019re contributing to a resilient, inclusive housing market that offers real value to South African communities and to our stakeholders.\u201d<\/p>\n\n\n\n
Divercity’s portfolio includes Barlow Park, which is developing with the Atterbury Group, Moolman Group and Twin City Development. <\/p>\n\n\n\n
The development is situated next to the M1 highway in Sandton has is visible to those who take the route regularly.<\/p>\n\n\n\n
It is situated at 180 Katherine Street, Sandton, and is only a few minutes away from Sandton City. The suburb is widely referred to as the richest square mile in Africa.<\/p>\n\n\n\n
The project was announced in 2017 and valued at R3 billion. <\/p>\n\n\n\n
However, construction only started in 2022 due to COVID-19 and changes in the real estate market.<\/p>\n\n\n\n
The development plans to offer 4,100 affordable residential units in 11 apartment blocks. <\/p>\n\n\n\n
The massive development also includes a 5,500 sqm retail centre, which houses Checkers, Clicks, MR Price, PnP Clothing and Nando’s <\/p>\n\n\n\n
There is also a Curro High School, which anchors the development. <\/p>\n\n\n\n
Another similar development recently finished by Divercity is the Jewel City Precinct in the heart of the Johannesburg CBD. <\/p>\n\n\n\n
Jewel City has six city blocks, 17,000 sqm of office space, 10,000 sqm of retail space, a school, a day clinic and sports facilities. <\/p>\n\n\n\n
Divercity also owns the Absa Towe in the Johannesburg CBD. <\/p>\n\n\n