Vantage Capital makes maiden bet from fourth mezz fund in South Africa
Vantage Capital, Africa’s largest mezzanine fund manager, has invested ZAR430 million ($28.4 million) in Seaton Estates, a middle to upper-medium residential coastal development located in Kwa-Zulu Natal, South Africa.
This marks the first investment by the debt investor, which recently roped in another limited partner for its new fund after making a first close last year.
The promoter of the transaction is Collins Residential, the residential arm of a diversified group with interests in the real estate, hospitality and agricultural sectors, both in South Africa and internationally.
The Collins Group is a multi-generational family-owned business, headed by Murray Collins, which has its roots in construction dating back to the early 1900’s. Collins Residential has previously completed projects like Zululami Luxury Coastal Estate (adjacent to the Seaton development), Mount Edgecombe Retirement Village and Emberton Estate.
The Seaton Estates development sits on prime property with direct access to a kilometre stretch of beach frontage. It comprises 1,198 single residential stands, and 29 planned urban developments, over seven phases. Later stages of the development will include commercial mixed-use nodes, retail, education, and sporting facilities. The development is near the popular leisure towns of Salt Rock and Ballito.
This transaction represents Vantage Capital’s 32nd mezzanine investment across four funds in 11 African countries. Outside of South Africa, Vantage has invested in Egypt, Morocco, Côte d’Ivoire, Ghana, Nigeria, Uganda, Kenya, Mauritius, Namibia and Botswana.
Luc Albinski, chairman of Vantage Capital, said: “KwaZulu Natal has been hard hit by the recent riots. We are delighted to be able to help build back confidence in the region by making our first mezzanine investment of Vantage’s fourth fund into this wonderful project, which will generate hundreds of jobs over its seven-year construction period.”
Adaptive Consulting acted as financial advisor to the transaction. Werksmans Attorneys acted as legal counsel for Vantage. Other advisors included Webber Wentzel, PWC, JLL, Pro Africa, Citeplan and IBIS Consulting.
