PSG Group invests R675 million in Amdec

PSG Group spent R675 million for a 50% stake in Evergreen Lifestyle, part of local property business Amdec, as it eyes expansion into the lucrative retirement property sector, the companies said.

“Our investment mandate is to invest in and work with businesses that show high growth poten- tial,” said Nico de Waal, CEO of PSG Alpha, a unit of PSG Group. He said the investment was subject to regulatory approval.

The investment holding company, PSG Group is already a majority shareholder of Curro Holdings, South Africa’s largest private education group which is expected to float its higher education business next month.

James Wilson, CEO of Amdec Group, which includes the mixeduse Melrose Arch in Johannesburg, said there was scope to meet increased demand for retirement lifestyle villages.

The cash injection will allow for expansion to about 3 000 homes over the next three years, from the current 500 homes, mainly in the Cape Town region.

Beyond five years, the companies plan to have more than 20 operating villages with 10 000 homes, growing the gross asset value to R20 billion from just under R2 billion now.

“We want to scale quickly because the numbers of middle to upper-income retirees in South Africa are growing, so not only does the demand for quality accommodation exist, but it is outstripping supply,” Wilson said in a launch statement. – Reuters