Vantage Capital exits Seaton Estates investment on KZN North Coast

Vantage Capital has exited its investment in Seaton Estates, a residential development on KwaZulu-Natal’s burgeoning North Coast, after a four-year holding period.

The private debt fund manager invested R360 million in January 2022 to fund roads, utilities and other core infrastructure for the initial phases of the estate. Vantage said it has now been fully repaid through a combination of property sales and a senior debt refinance by FedGroup.

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“This investment demonstrates how structured mezzanine capital can unlock large-scale infrastructure development in complex residential projects,” said Roshal Ramdenee, partner at Vantage Capital.

“Our funding enabled the timely delivery of critical bulk infrastructure, which supported strong sales momentum across the estate.”

Seaton Estates includes 1 150 residential opportunities, comprising 600 freehold stands and 550 sectional-title units. The development is located near Salt Rock and Ballito and includes beach access, sports facilities and conservation areas.

The investment was the first transaction under Vantage’s Fund IV programme.

Vantage Capital’s chair Luc Albinski said the project faced significant external challenges during the investment period. “Despite the disruptions of the KZN riots, extreme weather events and approval delays, the partnership remained resilient,” he said.

Jon De Bufanos, financial director at Collins Residential, said the mezzanine funding provided flexibility during the early stages of the development.

Umhlanga Ridgeside-based Collins Residential is leading the multi-billion-rand Seaton Estate development. It is also the developers behind the new Club Med Resort set to open later this year not far from the estate in neighbouring Tinley Manor.

“The funding structure [for Seaton] gave us room to continue progressing in a measured and disciplined way during a challenging period,” said De Bufanos.

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Vantage did not disclose the value of the exit or the return generated on the investment. Werksmans acted as legal adviser to Vantage on the transaction.

Established in 2001, Vantage Capital notes that it has raised $1.6 billion across seven mezzanine and renewable energy debt funds and has completed 66 investments across Africa.

* Likho Mbuka is a Moneyweb intern. 

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