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Divericity south africa proparco urban housing
Proparco and 27four have invested in Divercity Urban Property Group, a South African investment platform dedicated to the construction of affordable rental housing. The investment will finance portfolio growth and balance sheet optimization in the company.
Client presentation

Divercity is a South African investment platform dedicated to rental affordable housing. Divercity develops, owns and manages affordable rental housing in centrally-located, neighbourhoods with good amenities in South Africa’s major cities. Their portfolio of 6,500 apartments provide low-wage earning households with quality accommodation in areas where they could not otherwise afford to live. This model has a considerable social, environmental and economic impact, while also creating excellent investment-grade assets for institutional investor.

Project description

Proparco invested €15m into Divercity, alongside 27Four, a Cape Town-based asset manager, in order to fund portfolio growth and balance sheet optimization. Through this investment, Proparco contributes to the reinforcement of the rental offering in South Africa, which has been identified as a key priority by the government given the severe housing backlog, and contributes to the resorption of spatial segregation the country has been facing for decades. This projects also provides Proparco with an opportunity to support the development of energy efficient buildings aiming at achieving an EDGE certification. 

Project impact

The project is expected to support 1 800 local jobs and provide access to affordable housing for 31 000 people. The project is qualified to the 2X Challenge (meeting the leadership, employment and products/services criteria). The project will contribute to SDG 5 (gender eauqlity), 8 (decent work and economic growth), 11 (sustainable cities and communities) and 13 (climate action). 

11/30/2023
Date of signature of the project
Climate co-benefit project
Sectors
South Africa
Location
Financing tool
15 000 000 Euros
Amount of funding
EUR 15m Equity Investment
Financing details
Divercity Urban Property Fund Proprietary Limited
Client
Head office country
PZA1131
Project number
CES

This information is given at the time of signature, without prejudice to any developments in the operation/project