Vantage Capital, Africa’s one of the leading mezzanine fund managers, has provided US$4.89mn of mezzanine funding for the development of Kayalane Heights, a first-of-its-kind affordable housing development located in Lebowakgomo, Limpopo
The promoter of the transaction is the Alleyroads Group, a South African black-owned property development company led by Ivan Pretorius.
The current housing shortage in South Africa is extensive, the government estimates that there is a shortfall of around two million homes. A number of initiatives have been implemented in the private and public sectors to reduce the deficit. However, the current rate at which affordable housing is being delivered is less than the population growth rates in many areas. Alleyroads is a developer which is working to meet the demand for sustainable housing and help fulfil the government’s ambitious goal of providing homes for all citizens within 10 years.
In Lebowakgomo, there is a shortage of affordable rental housing despite significant demand. The region is currently home to more than 45,000 residents, several government offices and its bespoke shopping outlets offer a myriad of retail options.
Ivan Pretorius, managing director of Alleyroads Group, noted, “Alleyroads sought a strong funding partner to support the Kayalane Heights precinct, we are delighted to see the confidence Vantage Capital has placed in the development and we welcome a long term partnership.”
This transaction represents Vantage Capital’s 29th mezzanine investment across three generations of funds in ten African countries. Outside of South Africa, Vantage has invested in eleven transactions across Morocco, Côte d’Ivoire, Ghana, Nigeria, Uganda, Kenya, Mauritius, Namibia and Botswana.
Qualirod Capital acted as financial advisor to the transaction, Werksmans Attorneys acted as legal counsel for Vantage, and other advisors included Cliffe Dekker Hofmeyr, Arup, Pro Africa and IBIS Consulting.
