SA Affordable Housing November - December 2018 // Issue: 73 | Page 13

NEWS
Divercity has secured a development pipeline of an additional
R3-biilion of investment, and the funding required to roll it
out. This pipeline consists of over 3 000 new affordable
residential units as well as prime inner-city office and retail
space. The vision for the property income fund is to grow it
towards a target of about R6-billion in assets over the next
three to four years and a stock exchange listing as a REIT (real
estate investment trust).
Wouter de Vos, CEO of Atterbury Property Fund, says, “By
clustering investment properties in specific precincts, not only
does Divercity benefit from management efficiencies, but it
also enjoys better control of assets by enhancing the intrinsic
value around each of its core real estate investments.
Essentially, it is creating large-scale, mixed-use, mixed-income
urban renewal precincts. In this way it also creates the density
and scale to have a real impact on the cityscape.”
The fund invests in retail, commercial and residential
properties. It intends to increase its balance of residential
property over time in response to the massive demand for
quality homes in its urban investment corridors. It is this
residential development that it sees as a key ingredient to
create vibrant mixed-use precincts, and this is where Ithemba
– a leader in the residential market – will play an important role.
Adding to the live-work-play attraction of these hubs,
Divercity has also set its sights on adding more hospitals,
clinics, schools, retail and leisure to its precincts.
By creating critical mass with its focused investment zones,
it is also better able to influence and control factors such as
safety, sidewalks and roads. This not only ensures the highest
standards for its property management, but also for the area
around buildings, which ultimately create better
neighbourhoods to live and work in.
“While community is at the core of Divercity’s business model,
the business case has been built around an asset class that we
believe in and the returns it generates. The fact that it will also
generate lots of positive social impact is an added benefit. This is
a unique, scalable business and we’re excited to be part of its
growth,” emphasises Rian Reyneke, CEO of Ithemba.
Evidence of this can be found in New York, London and
beyond, where urban renewal has transformed decaying areas
into the most highly sought-after and valued properties in the
city. “We really want to take inner-city rejuvenation back to
basics through the collective leadership of private and public
sector as well as civil society stakeholder engagement,” says
Tebogo Mogashoa, chairman of Talis Property Fund.
“We are working on fresh property products and new
innovation for our assets and their communities,” confirms De
Vos. We are incredibly proud of the sustainable efficiencies,
cutting-edge urban design techniques and the technologies
we apply to create communities that are really vibrant, cool
and great places for people.”
Nurturing and developing a new generation of property
skills, the executive teams of Atterbury, Ithemba and Talis
guide Divercity’s dedicated management. As the fund grows
towards critical mass, its trajectory includes transforming its
management to become an empowered business.
Each precinct will work with its stakeholders, such as its
city, city improvement district and its community.
NOVEMBER - DECEMBER 2018
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