Vantage Capital (www.VantageCapital.co.za), Africa’s largest mezzanine fund manager, announced today that it has arranged R430 million for mezzanine financing for the development of Seton Estates, a coastal residential development located on the north coast of Kwa Zulu Natal. , South Africa. The promoter of this 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 business, headed by Murray Collins, that has its roots in construction in the early 1900s. Collins Residential has an impressive track record in KwaZulu-Natal, with previous developments including Zululami Luxury Coastal Estate (near Seton development), Mount Edgecombe Retirement Village and Emberton Estate.
Seaton Estates looks to support the growing need for residential housing in the central to upper parts of the property market along the north coast of KwaZulu Natal, one of the fastest growing regions in South Africa. The growth in housing demand is underpinned by strong immigration trends, strong investment in infrastructure in the region, and the increased flexibility that South Africans have to work from home, a permanent consequence of the Covid-19 pandemic.
Seton Estates is located on a prime estate with direct and exclusive access to a 1 kilometer stretch of beach front. Seton comprises of 1,198 individual residential suites and 29 urban developments planned over 7 phases. The project is designed as an eco-friendly coastal area featuring rural pastures, ocean views and rehabilitated indigenous forest lands. Facilities within the project will include recreational areas, a beach club, direct beach access, multi-sport facilities, 26 kilometers of cycling/running trails, and rehabilitated natural forests and parks. Subsequent phases of development will include mixed-use commercial contract, retail, education, and sports facilities. The project is located near the famous theme parks of Salt Rock and Ballito.
Murray Collins Managing Director Collins Residential noted, “Seton represents a unique way to live on a large scale. As the developers of this iconic property, we are driven by a real commitment to preserving and preserving the landscape throughout while designing within a sustainable and purposeful development, to significantly raise the level of KZN’s North Coast.”
This transaction represents 32 for Vantage Capitalsecond abbreviation Mezzanine investing across four generations of funds in eleven African countries. Outside of South Africa, Vantage has invested in ten countries including Egypt, Morocco, Ivory Coast, Ghana, Nigeria, Uganda, Kenya, Mauritius, Namibia and Botswana.
Luke AlbinskyThe president of Vantage Capital said: “KwaZulu-Natal has been hit hard by the recent riots. We are pleased to be able to help rebuild trust in the region by making our first mezzanine investment for the fourth Vantage Fund in this remarkable project, which will generate hundreds of jobs over the seven-year construction period.”
Roshal RamdiniCo-Partner of Vantage Capital, added: “We are proud to support one of South Africa’s leading residential developers in what will be a transformative development for the north coast of KwaZulu-Natal. Seaton Estates directly caters to the needs of buyers in a thriving economic hub, while providing unparalleled access to amenities World class and great ecological habitat.”
Adaptive Consulting acted as financial advisor for the deal, Werksmans attorneys served as legal counsel for Vantage, and other advisors included Webber Wentzel, PWC, JLL, Pro Africa, Citeplan and IBIS Consulting.
Distribution of APO Group on behalf of Vantage Capital Group.
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About Vantage Capital:
Founded in 2001, Vantage Capital Group is the largest independent African Mezzanine Debt Fund manager on the African continent. It has raised more than $1.4 billion in seven technology, mezzanine and renewable energy debt funds, and has so far made 56 investments across the African continent.
Vantage has offices in Johannesburg and Cape Town and typically targets mezzanine debt opportunities ranging from $10 million to $40 million in over a dozen major African markets. Mezzanine debt is an intermediate form of risk capital, which lies between the large debt, the least risky segment of the capital structure, and equity, the riskiest. It combines the elements of both debt and equity and thus provides companies with long-term financing on terms that are less dilutive to shareholders than pure equity.
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