The funds are directed to five prime property developments in Uganda, three of which are operating and two of which are under development.
The three operating properties, which are all located in the upmarket suburb of Kololo in Kampala, are Protea Hotel Kampala, CNOOC Building and Elizabeth Royal Apartments.
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In addition to property, the Simba Group has business interests in telecom, energy, agriculture, mining and other industries.
Patrick Bitature, the Founder and Chairman of Simba Group said, 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.”
Mokgome Mogoba, associate partner at Vantage added that the group was 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.
Warren van der Merwe, chief operating officer at Vantage also welcomed the developments.
“Simba has managed to build an impressive and successful group of businesses, through a combination of entrepreneurial flair and highly professional management,” said Van der Merwe.
“Theirs is the kind of story that underpins our Pan African investment strategy of supporting mid-market family-owned businesses that are seeking to raise growth capital without having to dilute their shareholding. This is the kind of Group we would like to back in future transactions.”
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 (SADC) countries.
Simba Properties is Vantage’s first investment in Uganda and the twelfth mezzanine transaction in Vantage’s second fund, which is now more than 85 per cent invested. Vantage has commenced the raising of its third mezzanine fund, which is targeted to close by the first quarter of 2015 at 250 million US dollars.