South African firm Vantage Capital, Africa's largest mezzanine fund manager, announced it has provided R82 million ($5 million) in mezzanine financing for the development of Kayalane Heights, a unique social housing project in South Africa.

The promoter and beneficiary of the transaction is Alleyroads Group, a leading South African black-owned real estate development company. This transaction represents Vantage Capital's 29th mezzanine investment out of three generations of funds in ten African countries.

Outside South Africa, the firm has invested in eleven transactions in Morocco, Côte d'Ivoire, Ghana, Nigeria, Uganda, Kenya, Mauritius, Namibia, and Botswana. Warren Van der Merwe, the 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.”

The South African government estimates that there is a shortfall of around 2 million homes in the country.

Several initiatives have been implemented in the private and public sectors to improve the situation, but the current rate of social housing delivery is below the population growth rate in many parts of the country.

Idriss Linge