Vantage Capital (www.VantageCapital.co.za), Africa’s largest mezzanine fund manager, today announced that it has arranged a R430 million mezzanine financing for the development of Seaton Estates, a coastal residential 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 property, hospitality and agricultural sectors, both in South Africa and internationally. The Collins Group is a multi-generational family business, led by Murray Collins, which has its roots in construction since the early 1900s. Collins Residential has a proven track record in KwaZulu Natal, with previous developments including the Zululami Luxury Coastal Estate recently completed (adjacent to Seaton development), Mount Edgecombe Retirement Village and Emberton Estate.
Seaton Estates seeks to meet the growing need for residential accommodation in the mid to upper segments of the property market along the North Coast of KwaZulu Natal, one of South Africa’s fastest growing regions. Growth in housing demand is supported by strong out-migration trends, strong infrastructure investment in the region and the increased flexibility for South Africans to work from home, a lasting consequence of the Covid-19 pandemic. 19.
The Seaton Estates development sits on prime property with direct and exclusive access to one kilometer of beachfront. Seaton comprises 1198 unique residential settlements and 29 planned urban developments, spread over 7 phases. The development is designed to be an eco-friendly coastal estate characterized by countryside grasslands, ocean views and reclaimed native forest land. Development facilities will include recreation areas, a beach club, direct beach access, multi-sports facilities, 26km cycle/running paths and rehabilitated forests and natural parks. Later stages of development will include mixed-use commercial nodes, retail, educational and sports facilities. The development is close to the popular recreation towns of Salt Rock and Ballito.
Murray Collins the managing director of Collins Residential said: “Seaton represents a unique way of life on a large scale. As developers of this iconic estate, we are driven by a genuine commitment to the conservation and preservation of the natural landscape while designing within the framework of sustainable and meaningful development, to dramatically elevate the North Coast of KZN.
This transaction represents the 32n/a Mezzanine investment across four generations of funds in eleven African countries. Outside of South Africa, Vantage has invested in ten jurisdictions including Egypt, Morocco, Ivory Coast, Ghana, Nigeria, Uganda, Kenya, Mauritius, Namibia and Botswana.
Luc Albinsky, Chairman of Vantage Capital said: “KwaZulu Natal has been hit hard by the recent riots. We are delighted to be able to help restore confidence in the region by making our first mezzanine investment from Vantage’s fourth fund in this magnificent project, which will generate hundreds of jobs over its seven-year construction period.
Rochal 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 meets the needs of buyers in a booming economic hub, while providing unparalleled access to world-class facilities and beautiful eco-friendly habitat.
Adaptive Consulting acted as financial advisor to the transaction, Werksmans Attorneys acted as legal advisor to Vantage, and other advisors included Webber Wentzel, PWC, JLL, Pro Africa, Citeplan and IBIS Consulting.
Distributed by APO Group on behalf of Vantage Capital Group.
For more information contact:
Tel: +27 83 390 7703
Tel: +27 78 147 7839
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 over $1.4 billion in seven separate technology, mezzanine and renewable energy debt funds and has made 56 investments on the African continent to date.
Vantage has offices in Johannesburg and Cape Town and typically targets $10m to $40m mezzanine debt opportunities in more than a dozen key African markets. Mezzanine debt is an intermediate form of venture capital, which sits between senior debt, the least risky slice of the capital structure, and equity, the most risky. It combines debt and equity elements, providing companies with long-term financing on terms that are less dilutive to shareholders than pure equity.
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