Vantage Capital, Africa’s largest mezzanine debt fund manager, has exited its investment in Alleyroads, a black-owned affordable housing developer in South Africa.
Vantage’s exit was financed by ABSA, which also provided funds for further expansion. Terms of the exit were not disclosed.
Vantage had provided ZAR82 million to Alleyroads, managed by Ivan Pretorius, in May 2020 to part-fund the development of Kayalane Heights, an affordable housing development located in Lebowakgomo, Limpopo.
Roshal Ramdenee, Associate Partner at Vantage Capital, said: “We supported an early-stage business at a critical juncture in its growth trajectory, with the use of a bespoke mezzanine debt solution. We saw the opportunity to partner with a strong and dedicated management team in an essential sector in South Africa and we are proud of the role Vantage played in unlocking affordable housing for many South African citizens.”
This exit comes after two new deals this year by Vantage. In March, it provided $10 million in mezzanine debt funding to Egyptian private equity firm Compass Capital to acquire six Grade-A office buildings in East Cairo.
Compass Capital had struck a bolt-on deal for office properties in Cairo. It is making the acquisition via an existing real estate company that owns and operates the Walk of Cairo, an outdoor retail boulevard in West Cairo.
Vantage made its maiden bet from the fourth mezz fund in January. It invested ZAR430 million ($28.4 million) in Seaton Estates, a middle to upper-medium residential coastal development located in Kwa-Zulu Natal, South Africa.
Led by Warren van der Merwe, Vantage had marked the first close of its fourth mezzanine fund a year back.
Vantage Capital’s portfolio is spread across 11 countries in Africa. Last year, Vantage had provided $23 million of mezzanine debt funding to PickAlbatros Hotels in its maiden deal in Egypt.