Commercial Real Estate Solutions
At Africa Capital we are passionate about providing our real estate clients with innovative commercial real estate solutions.
We offer unique entrepreneurial real estate solutions and security packages, including:
- Ground Lease Structures. Africa Capital is the pioneer in Africa on ground lease structures.
- Co-Investment Benefit: the investor achieves a higher cash flow return on his equity and with the potential tax advantages of the structure.
- Commercial Landlord Benefit: Our institutional backers have a long investment horizon and are prepared to pay a premium for the ground rent cash flows compared with the rental yield paid by the commercial real estate investor for the rental cash flows.
- Tenant Benefit: a ground lease structure provides access to well-located land that otherwise could not be bought and the tenant does not need to come up with the upfront cash required to purchase the land.
- Developer & Partial Property Liquidity & Exit Solutions. Commercial real estate is often illiquid for small partners. We offer either exit financing or can assist with the valuation of the equity stake and arrange a subsequent buyout by our institutional backers.
- Tenant Improvement (TI)/Cap Ex Financing, including “over-market” TI allowances. Typically TI funding will be for the terms of the lease and structured in a way that avoids interfering with the primary loan.
- Shopping Basket Line. Similar in structure to an overdraft, allowing for flexible and fast acquisition of commercial real estate.
- Sectional Title Conversion Financing. We finance conversions from a single title deed to various distinct sectional title units, as well as arrears finance solutions to body corporate and homeowner associations.
- Mezz & Unitranche Financing: we offer mezz & unitranche financing to leading developers & commercial real estate owners. Our unitranche loans combines senior and subordinated debt into one instrument, offering our clients a blended rate that falls between the rate for senior debt & mezzanine finance. The offers a range of benefits, including:
- Terms are more flexible, with convenant lite features.
- Fewer parties to negotiate with and only a single facility agreement that is entered into.
We are more than happy to confidentially discuss your unique needs and encourage you to contact us.