Marking its first investment in Namibia, mezzanine fund manager Vantage Capital announced last week that it is providing United Africa Group, a property and hospitality group, with a N$80 million (approximately US$5.6 million) debenture facility to support the company’ share of the development of a new Hilton Garden Inn in Windhoek. Additional terms of the deal were not disclosed.
Commenting on the transaction, Warren van der Merwe, Vantage Capital’s COO said “We are delighted to partner with UAG for our first investment in Namibia and Vantage’s 21st mezzanine transaction overall. UAG has built up a quality portfolio of hospitality and commercial property assets…and we are pleased to provide them with financial backing as they further entrench themselves as a leader in the local hospitality sector.”
UAG was founded by Haddis Tilahun in 1992, since when it has grown rapidly to be one of Namibia’s largest property and hospitality groups with a portfolio of 10 hotels and commercial real estate in excess of 12,5oo square meters of office space and 2,500 square meters of retail space in the country’s capital city, Windhoek.
The investment is Vantage Capital’s third transaction for Fund III, which is still currently being raised and looking to close at $260 million. Having supported the buyout of facilities management firm Servest in a $28 million transaction la year, Vantage invested $20 million in Landmark Africa, a Nigerian property development firm in mid-April. According to the statement announcing the United Africa Group transaction, the fund is expecting to close its fourth transaction before the end of June with an investment of over $17 million.