Africa-focused fund manager Vantage Capital exits Alleyroads in South Africa
Vantage Capital, Africa’s mezzanine debt fund manager, announced it has fully exited its investment in Alleyroads, an affordable housing developer in South Africa, managed by Ivan Pretorius. Vantage’s exit was financed by ABSA who also provided funds for further expansion.
Roshal Ramdenee, Associate Partner, Vantage Capital: ''Alleyroads is another success story for us. We supported an early-stage business at a critical juncture in its growth trajectory, with the use of a bespoke mezzanine debt solution. We saw the opportunity to partner with a strong and dedicated management team in an essential sector in South Africa and we are proud of the role Vantage played in unlocking affordable housing for many South African citizens.''
Vantage provided R82 million to Alleyroads in May 2020 to part-fund the development of Kayalane Heights, a first-of-its-kind affordable housing development located in Lebowakgomo, Limpopo. Whilst most banks were unwilling to fund the early-stage construction risk, Vantage recognised the enormous potential of Alleyroads providing a much sought after affordable rental housing development in an area with a significant shortage. Today, Kayalane Heights offers 256 attractive two-bedroom apartments, 24-hour security controlled access, covered parking, and a beautifully landscaped common area for leisure activities, all at an affordable price. The development plays a major role in supporting the South Africa government’s human settlements programme by providing access to safe, clean and quality homes.
Today, Kayalane Heights offers 256 attractive two-bedroom apartments, 24-hour security controlled access, covered parking, and a beautifully landscaped common area for leisure activities, all at an affordable price. The development plays a major role in supporting the South Africa government’s human settlements programme by providing access to safe, clean and quality homes.
Ivan Pretorius, Managing Director, Alleyroads Group: ''Vantage has been there for us during both strong and turbulent times particularly with the impact COVID-19 had on the property sector. Our partnership should be considered a great model for the funding of sustainable housing in South Africa.''
www.vantagecapital.co.za
www.alleyroads.co.za
