Vantage Capital supports Compass Capital to acquire a portfolio of Grade A office buildings in East Cairo

Profitable capital (, Africa’s largest mezzanine fund manager, announced today that it has provided $10 million of mezzanine debt funding to Compass Capital, Egypt’s leading private equity firm, to acquire six Class A office buildings in East Cairo. The acquisition was made by Compass Capital’s real estate firm Bonyan for Development and Trade, which owns and operates the Walk of Cairo, an outdoor retail boulevard in West Cairo.

The office building was acquired from Namaa for Development and Real Estate Investment, a private real estate developer and operator owned by the Sallam family. Located in the heart of New Cairo’s central business district, this property has an aggregate gross rentable area of ​​47,200 square meters and is fully leased by multinational companies (including Nestlé, General Electric, Johnson & Johnson and Lafarge Cement) as well as large local Egyptian factories. company.

The Walk of Cairo, a real estate asset owned by Bonyan, is located in Sheikh Zayed City, West Cairo and commenced operations in December 2020. This open-air mall provides a variety of unique entertainment options and experience offerings such as the Museum of Illusion, wax museum and an amphitheater where weekly events are held. The mall also offers a wide selection of food and beverage, lifestyle and retail outlets, housing popular brands including Natuzzi, McCafé, Espresso Lab and Core Gym.

Founded in 2010, Compass Capital is a leading private equity firm based in Cairo with a hands-on management approach. Over the past twelve years, the company has built an attractive investment portfolio in pharmaceuticals, financial services and real estate.

The acquisition of an office building facilitated the expansion and diversification of Compass Capital’s real estate portfolio. Tarek Abdel RahmanCompass Capital’s Co-Managing Partner, explained, “There is currently no easy way for investors to gain exposure to a stable diversified portfolio, generating real estate assets in Egypt even though it is a major and fast-growing sector of the economy. Therefore, our vision is to build such a real estate portfolio with the aim of listing it on the Egyptian Stock Exchange. By accessing public capital, further real estate acquisitions can be made over time, allowing the portfolio to continue to grow and diversify.

The listing will be the third for Compass Capital, which had previously achieved a partial exit from Rameda Pharmaceuticals and a full exit from CI Capital via an initial public offering on the Egyptian Stock Exchange.

Tarek added, “Vantage Capital has played an important role in supporting our vision and their funding has enabled Kompas to maintain its existing equity stake in its real estate portfolio.”

David KornikPartner at Vantage Capital, noted, “The real estate market in Egypt is very strong and shows strong growth, despite the onset of Covid. In particular, East and West Cairo have grown rapidly as residents move from central Cairo to escape traffic jams and improve their quality of life. The population of West Cairo alone has quadrupled over the past four years, from 440,000 inhabitants in 2017 to 1.8 million today and is expected to reach 6.7 million by 2027. Similarly, the high growth rate seen in East Cairo, which currently has about 8 million inhabitants. This has fueled strong demand growth for retail and office space in the area, underpinning the real estate assets in the Kompas portfolio.”

The transaction represents 33 . Vantage Capitalrd investing in four generations of mezzanine funds, with portfolios spread across eleven African countries. Warren van der MerweManaging Partner at Vantage Capital, added, “The transaction with Compass Capital marks our second investment into Egypt in as many years. With a population of over 100 million and an economy delivering strong growth, this is a country with significant potential and a key target market for our company as we look to tap into our newly raised fourth mezzanine fund.”

Africa’s population growth and urbanization are spurring significant investment into property development across the continent. Over the years, Vantage has provided substantial financial support to the sector. This includes funding two neighborhood shopping malls in Nigeria and Kenya, two multi-purpose developments in Lagos and on the west coast of Mauritius, a hotel & commercial property group in Namibia, a leading owner & operator of hotels on the Egyptian Red Sea, as well as two residential property developments in Africa. South.

Matouk Bassiouny & Hennawy (in Cairo and Dubai) and Werksmans Attorneys (in Johannesburg) served as legal counsel.

Distributed by APO Group on behalf of Vantage Capital Group.

For more information contact:
David Kornik
[email protected]

Umar Gharbawi
Senior Fellow
[email protected]

About Vantage Capital:
Vantage Capital is an Africa-focused fund manager with offices in Johannesburg and Cape Town. The business was founded in 2001 and has raised over $1.4 billion in funding. Since 2006, Vantage Capital’s Mezzanine division has made 33 investments in four funds to 11 African countries, making it the largest and most experienced independent mezzanine funder on the continent. In addition, Vantage Capital’s GreenX division has made 14 senior debt investments into South African solar and wind energy projects across two funds.

Vantage Capital targets US$ 10-40 million mezzanine debt opportunities in 14 key African markets. Mezzanine debt is an intermediate form of risk capital, which lies between senior debt, the least risky stage of the capital structure, and equity, which is the riskiest. It combines elements of debt and equity thereby providing the company with long-term financing on terms that are less dilutive to shareholders than pure equity. Website:

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Vantage Capital supports Compass Capital to acquire a portfolio of Grade A office buildings in East Cairo

Source link Vantage Capital supports Compass Capital to acquire a portfolio of Grade A office buildings in East Cairo

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