Why Vantage Capital Exited from Seaton Estates Investment

Vantage Capital, Africa’s largest mezzanine debt fund manager, has fully exited its investment in Seaton Estates, a premium residential coastal development on the North Coast of KwaZulu-Natal, South Africa. The development is promoted by Collins Residential, the residential division of a diversified group with interests in real estate, hospitality, and agriculture in South Africa and internationally.

Seaton Estates occupies prime coastal property with direct access to a kilometre-long beach frontage. The development includes 1,150 residential opportunities, comprising 600 single residential stands and 22 planned urban developments offering an additional 550 sectional title units. Designed as an eco-conscious coastal estate, Seaton Estates features wild grasslands, ocean views, and rehabilitated indigenous forests. On-site amenities include a country club with multi-disciplinary sports facilities, an equestrian centre with arenas and stabling, direct beach access, and 26km of walking, running, and bridle trails. Future phases will introduce commercial mixed-use nodes, including retail, education, and office facilities. The estate is situated close to the leisure towns of Salt Rock and Ballito.

Vantage Capital initially invested in Seaton Estates in January 2022, arranging R360 million in mezzanine funding for the development of initial infrastructure and bulk services, primarily supporting the single residential units. After a four-year investment period, Vantage has fully exited through a combination of sale proceeds and a senior debt refinance by FedGroup.

Werksmans acted as legal counsel for Vantage.

Roshal Ramdenee, Partner at Vantage Capital, said, “This investment demonstrates how structured mezzanine capital can unlock large-scale infrastructure development in complex residential projects. Our funding enabled the timely delivery of critical bulk infrastructure, which in turn supported strong sales momentum and value creation across the estate. We are pleased to have partnered with Collins Residential on a high-quality coastal development and to have achieved an outcome that reflects both the strength of the underlying asset and disciplined execution over the investment period.”

Luc Albinski, Executive Chairman at Vantage Capital, added: “Seaton Estates marked the first investment of our Fund IV program and set the tone for what we aim to achieve. From the outset, we partnered with an exceptionally entrepreneurial KZN-based group known for executing large and complex developments. Despite the disruptions of the KZN riots, extreme weather events, and unavoidable approval delays, the partnership remained resilient. Collaborating with such a professional and committed team has been a genuine pleasure.”

Jon De Bufanos, Financial Director at Collins Residential, said: “Vantage Capital’s mezzanine funding played an important role in supporting the delivery of key infrastructure during the early phases of the Seaton Estates development. The funding structure gave us flexibility during a challenging period, while allowing the project to continue progressing in a measured and disciplined way. We appreciated Vantage’s practical, collaborative approach throughout the investment period and their contribution to the development of Seaton.”