Kampala- Simba Properties Investment Company, a local property development firm, has negotiated a $10 million (about Shs28 billion) deal with a regional debt provider, implying that real estate players do not have to solely rely on commercial banks for financing.
The funds, committed by Vantage Capital, a debt provider, are directed to five prime property developments in the country, three of which are operating and two of which are under development.
The three operating properties, all located in the upmarket suburb of Kololo in Kampala, are: Protea Hotel Kampala, CNOOC Building, and Elizabeth Royal Apartments.
The two properties under development are: Hotel Naguru, which is anticipated to be operational by the end of next year and Moyo Close Apartments, high end apartments located in Kololo, also expected to be completed by the end of next year.
In a press statement issued last week by Vantage, the debt provider, quoted Mr Patrick Bitature, the founder and chairman of Simba Group, as saying: “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.”
Mr Mokgome Mogoba, Associate Partner at Vantage, said “We are proud to have invested with the Simba Group, a leading and influential group of companies in Uganda with a strong commitment to the country and to the East African region.”
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 countries.
Simba Properties is Vantage’s first investment in Uganda.
About the firms
And Vantage Capital was established in 2001 with funds under management of $14 million and currently manages more than $450 million. Simba Group, on the other hand, is an East African conglomerate with business interests in telecom, energy, property, agriculture, mining and other industries.
SOURCE: Daily Monitor