Proparco, 27four lead investment in South African affordable housing platform
French development finance institution, Proparco, and South African investment manager, 27four, have led a R550 million (c. $29 million) investment in Divercity Urban Property Group.
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French development finance institution, Proparco, and South African investment manager, 27four, have led a R550 million (c. $29 million) investment in Divercity Urban Property Group alongside reinvestment from its existing shareholders. The investment is intended to fund portfolio growth and balance sheet optimisation.
Divercity is a South African investment platform dedicated to affordable rental housing with supporting amenities in high-density and centrally-located urban precincts.
Gregor Quiniou, principal at Proparco commented, “Beyond the support to regeneration of South African cities, this project also gives Proparco an opportunity to support energy-efficient building programmes targeting EDGE certification. It aims to achieve several development goals through job creation and combating gender inequality by providing safe and best-in-class accommodation for tenants, first of which women who account for approximately half of Divercity’s tenant base.”
Mardé van Wyk, principal at 27four commented, “As South African investors we are painfully aware of the critical shortage of quality and well positioned affordable accommodation in our cities. We are excited by the innovative approach of Divercity to this perennial challenge and are pleased to be able to fund their expansion.”
Carel Kleynhans, CEO of Divercity said, “This significant investment in Divercity will enable us to develop over 2,500 new apartments. This helps us to demonstrate the impact and commercial viability of this economically-productive, sustainable and fundamentally empowering urban development model.”
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