South Africa’s Vantage Capital announced it has provided $4.8million 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 leading South African black-owned property development company led by Ivan Pretorius.
Since its inception in 2009, Alleyroads has built more than 3,000 residences across South Africa including over 1,500 affordable homes.
The current housing shortage in South Africa is extensive, the government estimates that there is a shortfall of circa 2 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.
Ivan Pretorius the 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.
Warren van der Merwe, Managing Partner at Vantage Capital said, “Vantage Capital is excited to be investing in the affordable housing space, making access to affordable housing a reality for hundreds of South Africans. We are very impressed with Alleyroads’ strong management team, vision and track record of quality execution over the past 12 years.”
Johnny Jones, Partner at Vantage Capital, added, “We are proud to support one of South Africa’s leading black developers who is seeking to narrow the country’s housing shortage in Lebowakgomo by providing high quality homes at an economical price.”