Day: December 12, 2023

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Proparco and 27four Invest $28.7 Million in SA PropTech Divercity to Address Affordable Housing Crisis in South Africa

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Proparco and 27four Invest $28.7 Million in SA PropTech Divercity to Address Affordable Housing Crisis in South Africa

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French development finance institution Proparco and South African investment manager 27four have announced a joint investment of R550 million (USD 28.7 million) in Divercity Urban Property Group.
 
This substantial funding, accompanied by reinvestment from existing shareholders, will empower Divercity to expand its property portfolio and enhance its balance sheet, ultimately enabling the development of over 2,500 new apartments.

Carel Kleynhans, CEO of Divercity, expressed his appreciation for the investment, emphasizing its crucial role in facilitating the construction of much-needed affordable housing units.
 
He further highlighted the opportunity to showcase the positive impact and commercial viability of Divercity’s innovative model for sustainable and efficient urban development.

Mardé van Wyk, Principal at 27four, acknowledged the pressing need for quality and affordable housing options in South African cities.
 
27four’s enthusiasm for Divercity’s approach to tackling this challenge is evident in their commitment to supporting its expansion efforts.

This investment aligns with the South African government’s priority of increasing access to affordable rental housing and addressing the critical housing shortage.
 
Moreover, it aims to combat the long-standing issue of spatial segregation within the country’s urban landscape.

A recent report by Harvard University’s Growth Lab identified spatial exclusion as a major obstacle to economic growth in South Africa, alongside challenges related to state capacity.
 
The report recommends the development of densely populated housing clusters near business hubs to overcome these hurdles and drive economic growth. Divercity’s vision seamlessly aligns with this recommendation.

Divercity’s round of funding marks a significant step towards addressing the vital need for affordable housing in South Africa and promoting sustainable urban development. 

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