JOHANNESBURG, South Africa, January 2022/ — Vantage Capital (www.VantageCapital.co.za), Africa’s largest mezzanine fund manager, announced today that it has arranged R430 million of mezzanine funding for the development of Seaton Estates, a residential coastal development located on the North Coast of Kwa-Zulu Natal, South Africa.
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 1900s.
Collins Residential has a recognised track record in KwaZulu Natal, with prior developments including the recently completed Zululami Luxury Coastal Estate (adjacent to the Seaton development), Mount Edgecombe Retirement Village, and Emberton Estate.
Seaton Estates looks to support the growing need for residential housing in the middle to upper segments of the property market along the North Coast of KwaZulu Natal, one of the fastest-growing regions of South Africa.
The growth in housing demand is supported by robust semigration trends, strong infrastructure investment in the region, and the increased flexibility that South Africans have to work from home, a lasting consequence of the Covid-19 pandemic.
The Seaton Estates development sits on prime property with direct, exclusive access to a kilometre stretch of beach frontage. Seaton comprises 1198 single residential stands, and 29 Planned Urban Developments, over 7 phases. The development is designed to be an eco-friendly coastal estate characterized by country grasslands, ocean views, and rehabilitated indigenous forest lands.
Facilities within the development will include leisure zones, a beach clubhouse, direct beach access, multi-sports facilities, 26km biking/running trails, and rehabilitated natural forest and parks. 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.
Murray Collins the Managing Director of Collins Residential noted, “Seaton represents a unique way of living on a grand scale. As the developers of this iconic estate, we are driven by a genuine commitment to conservation and preservation of the natural landscape all the while designing within the framework of sustainable and meaningful development, to significantly elevate the North Coast of KZN.”
This transaction represents Vantage Capital’s 32nd mezzanine investment across four generations of funds in eleven African countries. Outside of South Africa, Vantage has invested in ten jurisdictions including 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.”
Roshal Ramdenee, Associate Partner at 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 addresses the needs of buyers in a burgeoning economic hub, whilst providing unparalleled access to world-class facilities and a wonderful ecological habitat.”
Adaptive Consulting acted as financial advisor to the transaction, Werksmans Attorneys acted as legal counsel for Vantage, and other advisors included Webber Wentzel, PWC, JLL, Pro Africa, Citeplan, and IBIS Consulting.
About Vantage Capital:
Vantage Capital Group was established in 2001 and is the largest independent pan-African mezzanine debt fund manager on the African continent. It has raised funds in excess of US$ 1.4 billion in seven distinct technology, mezzanine, and renewable energy debt funds and has to date made 56 investments across the African continent.
Vantage has offices in Johannesburg and Cape Town and typically targets mezzanine debt opportunities of $10m-$40m across more than a dozen key African markets. Mezzanine debt is an intermediate form of risk capital, which is situated between senior debt, the least risky tranche of the capital structure, and equity, the riskiest. It combines elements of both debt and equity thereby providing companies with long-term funding on terms which are less dilutive to shareholders than pure equity.
Distributed by APO Group on behalf of Vantage Capital Group.
