Africa’s largest asset manager, the Public Investment Corporation (PIC), has made its first investment in the multifamily residential property rental sector, given the segment a welcome boost.
PIC, which manages funds on behalf of the Government Employees Pension Fund, invested in Divercity Urban Property Group an SA-based investment platform that offers affordable built-to-rent units with essential amenities in high-density, central urban areas. They typically include apartment buildings and multiple housing units in a single complex or estate.
Over the past year, the PIC has shown the greatest appetite among institutional investors in the resurgent property sector as as some companies’ share prices surged more than 50%.
The investment also takes Divercity a step closer to developing a further 2,500 rental units.
Multifamily refers to residential rental properties such as apartment buildings that are owned and managed by institutional landlords. A recent study commissioned by Divercity, Absa, and the SA Multifamily Residential Rental Association (SAMRRA), underscores the sector’s strong growth potential.
The study, which was conducted by global property researcher MSCI, reviewed five years of investment decision-making data on the multifamily sector and found the sector delivers consistent performance, low volatility, and predictable returns.
“As SA 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 Divercity CEO Carel Kleynhans.
PIC CIO Kabelo Rikhotso, said the state-owned asset manager is committed to making investments that not only provide sustainable financial returns for its clients but also drive impactful socioeconomic outcomes in the country.
“Our partnership with Divercity aligns with our mandate to support economic transformation and upliftment, creating accessible, quality affordable housing in strategic urban locations,” he added.
“By investing in the multifamily rental sector, we’re contributing to a resilient, inclusive housing market that offers real value to SA communities and to our stakeholders.”
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