PSG SA makes ‘largest’ cash transaction with move into retirement industry
PSG announced on Tuesday it has acquired a 50% stake in Evergreen Lifestyle.
CAPE TOWN - Another major company is moving into the retirement industry with a R675 million investment.
PSG announced on Tuesday it has acquired a 50% stake in Evergreen Lifestyle, which is part of local property business Amdec.
PSG CEO Nico de Waal spoke during a briefing in Cape Town.
“We are investing R675 million into Evergreen Lifestyle. It is a subscription for new shares, it is not a sale. This means all the money is going into the business for future growth. What’s noteworthy about it is that this is PSG’s largest initial cash transaction.”
The investment holding company already has the majority stake in Curro Holdings, which is the largest private education group.
The cash injection will allow for expansion to around 3,000 homes over the next three years, from the current 500 homes offered now, 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.
James Wilson, chief executive of Amdec Group, which includes the mixed-use Melrose Arch in Johannesburg, says there’s scope to meet increased demand for retirement lifestyle villages.
“We want to scale quickly because the numbers of middle to upper-income retirees in South Africa are growing quickly, so not only does the demand for quality accommodation exist, but it is swiftly outstripping supply.”
Additional reporting by Reuters.
(Edited by Shimoney Regter)