UK Development Finance Institution CDC Group Announces R500 Million Commitment To Regenerate South African Cities
UK Development Finance Institution CDC Group Announces R500 Million Commitment To Regenerate South African Cities. UK development finance institution, CDC Group has announced a R500 million commitment to Divercity Urban Property Fund – an affordable housing platform focused on the regeneration of cities in South Africa.
According to Business Tech, this investment will fund the construction and management of more than 2,500 new residential units over the next five years, predominantly in Johannesburg. According to the group, the projects will provide quality, affordable and environmentally sustainable housing for low and middle-income households in well-located but underinvested neighbourhoods in major cities in the country.
“South Africa faces a housing shortage of approximately 2.3 million units. A significant majority of its lower-cost housing is built on the urban periphery. This limits residential options for low and middle-income households to predominantly informal, congested and low-quality housing on the outskirts of cities,” the group told Business Tech. “It also impedes access to essential services including schools, healthcare facilities, public transport networks and employment hubs needed for improved social inclusion and living standards.”
“Through the creative design and structure of this platform by investors CDC, Ithemba and Atterbury – Divercity will be underpinned by market-leading property development and asset management expertise in rental housing which will be a competitive differentiator,” CDC group added. CDC Group plc (CDC) is the UK’s development finance institution. Wholly owned by the UK Government, CDC has invested in Africa and Asia for over 70 years. By investing for impact, CDC aims to help countries in Africa and Asia to build thriving economies that provide sustainable opportunities.
The company has two portfolios of investments: its Growth portfolio and Catalyst Strategies. Through its Growth portfolio, it invests patient, long-term capital into businesses that have the potential to achieve sustainable growth while making a positive environmental, social and economic impact. Through its Catalyst Strategies, it helps shape nascent markets and less commercially proven business models that demonstrate significant potential to create impact. Through Catalyst, CDC has launched independent but wholly owned platforms including Gridworks and MedAccess.
