PIC Invests in Divercity: A Landmark Move into South Africa’s Multifamily Residential Sector

• PIC's first investment in multifamily sector: PIC enters South Africa’s multifamily residential space, partnering with Divercity to address urgent housing challenges through affordable rental units.
• Growth potential in multifamily sector: Research shows multifamily investments offer stable, long-term returns, with South Africa’s housing crisis making this sector increasingly attractive to investors.
• Focus on socio-economic impact: PIC and Divercity align to create sustainable, affordable housing, fostering economic transformation and positive change in South Africa’s urban communities.

The Public Investment Corporation (PIC), Africa’s largest asset manager, has made a significant move into the multifamily residential sector by investing in Divercity Urban Property Group. This marks PIC’s first investment in the multifamily rental space and highlights a strategic focus on addressing South Africa’s urgent housing challenges.

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Divercity Urban Property Group, a leading investor in affordable rental housing in South Africa, is known for its socially responsible and sustainable approach to urban development. Specializing in high-density, well-located urban precincts, Divercity prioritizes affordable rental housing to serve low- and middle-income households. Through this partnership, PIC will help Divercity expand its portfolio and support the development of an additional 2,500 rental units in critical urban areas.

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Multifamily Sector: A Growing Opportunity

The multifamily sector refers to large residential properties, such as apartment buildings, that are managed and owned by institutional investors. This asset class has proven to offer stable, long-term returns, with low volatility and predictable performance. Recent research, sponsored by Divercity, ABSA, and the South African Multifamily Residential Rental Association (SAMRRA), indicates that the sector holds significant potential for growth and sustainability in South Africa.

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A study conducted by global property consultancy MSCI analysed five years of data and confirmed that multifamily investments consistently deliver reliable returns. These findings underscore the sector’s attractiveness, especially as South Africa faces an acute housing crisis and a shortage of quality rental options for the majority of its population.

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Carel Kleynhans, CEO of Divercity Urban Property Group, stated:“As South Africa grapples with an overwhelming housing need, well-managed, well-located affordable rental properties are crucial for both investors and society. This investment underscores the growing importance of the multifamily sector in South Africa and the role it plays in addressing the housing shortage.”

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PIC’s Commitment to Socio-Economic Impact

The Public Investment Corporation (PIC) is wholly owned by the government of South Africa and manages a diversified investment portfolio across various asset classes, including listed equities, capital markets, real estate, and private equity.

With clients primarily from the public sector, such as the Government Employees Pension Fund (GEPF), the PIC has a mandate to generate both financial returns and social value through its investments.

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Kabelo Rikhotso, PIC’s Chief Investment Officer, emphasized the alignment of this partnership with the corporation’s broader objectives:

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“At the PIC, our mission goes beyond financial returns—we aim to generate positive socio-economic impact. Our partnership with Divercity reflects this commitment. By investing in affordable housing in key urban areas, we are supporting economic transformation and fostering inclusive growth. The multifamily rental sector offers a unique opportunity to drive both sustainable returns and positive change in South African communities.”

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A Vision for Sustainable Urban Living

Divercity’s approach to urban development sets a new benchmark for socially and environmentally responsible real estate investment. The company focuses on creating urban precincts that provide affordable housing options close to work, transportation, and essential amenities, offering residents a chance to thrive in sustainable, well-connected environments.

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“Our goal is to redefine urban living by prioritizing the needs of lower-income households and ensuring that they have access to affordable, high-quality rental housing in well-located, amenity-rich urban areas,” said Kleynhans. “This investment allows us to further scale our vision and deliver on the promise of creating inclusive, future-focused communities that are economically viable and socially impactful.”

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Looking Ahead

This partnership between PIC and Divercity represents a crucial step towards solving South Africa’s housing crisis while also providing an attractive investment opportunity for institutional investors. By focusing on affordable rental housing in strategic urban locations, this collaboration will create lasting value for both investors and communities.

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