South Africa’s Vantage Capital, a mezzanine debt provider has invested $10m into Uganda’s Simba Properties, a Simba Group subsidiary in a move expected to change the country’s real estate landscape for good.
Simba Group runs Protea Hotel Kampala, CNOOC Building, Elizabeth Royal Apartments and in develoment phase Hotel Naguru and Moyo Close Apartments.
We are not sure if the investment affects Simba Group’s business interests such as Simba Telecom, Electro-Maxx and True North Power and Simba Farms, Simba Travel Care and Zuku TV among others but in a statement, Patrick Bitature, the Founder and Chairman of Simba Group said, “Vantage brings an important and exciting new model of financing to the East African region. Simba Group is pleased to have found a strong mezzanine financing partner who provides medium-term growth capital but does not want to take our hard earned equity.”
The investment in Simba Properties follows Vantage’s pan-African strategy of focusing on high-growth African markets such as the East African Community members, Ghana, Nigeria, and some of the Southern African Development Community (SADC) countries.
Simba Properties is Vantage’s first investment in Uganda and the twelfth mezzanine transaction in Vantage’s second fund, which is now more than 85% invested. Vantage has commenced the raising of its third mezzanine fund, which is targeted to close by the first quarter of 2015 at $250 million.
Warren van der Merwe, Chief Operating Officer at Vantage, added “Simba has managed to build an impressive and successful group of businesses, through a combination of entrepreneurial flair and highly professional management. Theirs is the kind of story that underpins our Pan African investment strategy of supporting mid-market family-owned businesses that are seeking to raise growth capital without having to dilute their shareholding. This is the kind of Group we would like to back in future transactions.”