French development finance institution Proparco and South African investment manager 27four have jointly invested 550 million rand ($28.7 million) in Divercity Urban Property Group. This funding will fuel Divercity's expansion, facilitating the development of over two thousand five hundred new apartments and bolstering its property portfolio. The investment addresses the critical shortage of affordable housing in South African cities, aligning with the government's priority to increase access to affordable rental housing and combat spatial segregation issues.
Divercity's funding round signifies a significant stride in promoting sustainable urban development and tackling the economic hindrances associated with spatial exclusion in South Africa. The investment supports Divercity's innovative model, aligned with recommendations from a Harvard University’s Growth Lab report, advocating for densely populated housing clusters near business hubs to spur economic growth. This investment by Proparco and 27four underscores the commitment to addressing societal challenges and fostering positive urban development in South Africa.