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

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

JOHANNESBURG, SOUTH AFRICA, 23 January 2025 — 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 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.”
 

About PIC

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.