Mergence Investment Managers, an infrastructure investment firm, has acquired a controlling stake in strategic digital infrastructure assets located within the residential precincts of Waterfall City, Gauteng. 

The transaction, executed through the Mergence Infrastructure & Development Equity Fund II, marks a significant expansion of Mergence’s digital infrastructure platform.

The acquisition aligns with a broader strategic repositioning by the seller, which is refocusing on its core property development and management business. 

Mergence has acquired Fibre-to-the-home (FTTH) network, securing exclusive rights to provide fibre connectivity to approximately 4,000 high-income residential units within Waterfall City, with scalable capacity to expand to more than 9,500 units in the short to medium term. The FTTH infrastructure represents the critical “last-mile” connection to end-users.

In addition Mergence has acquired Long-haul fibre network, which includes a 250-kilometre fibre optic backbone extending from Waterfall City to the Botswana border at Kopfontein.

With significant spare duct capacity, this network is strategically positioned to enhance connectivity across key economic nodes such as Rustenburg and Brits, while also enabling high-speed access in underserved mining communities including Cullinan, Zeerust, and Groot Marico.

Strategically located between Johannesburg and Pretoria, Waterfall City is a world-class, mixed-use development spanning 2,200 hectares. Anchored by the Mall of Africa and set to benefit from the proposed Gautrain extension, Waterfall has established itself as a premium residential and commercial hub with strong demand for integrated digital infrastructure. 

“Fibre connectivity ratios in South Africa remain relatively low at below ca 40%, whereas connectivity in Waterfall City exceeds 80%,” said Chito Siame, Head: Private Equity at Mergence Investment Managers. 

“This investment not only strengthens the resilience and reach of our digital infrastructure portfolio, but also meaningfully supports our goal of funding at least 30,000 fibre connections nationwide.”
Legal and financial advisors to Mergence on the transaction were Norton Rose Fulbright, PSG Capital and Nodus Capital, respectively. 
The transaction was financed by Investec.