EGYPT – Egyptian private equity firm, Compass capital has secured US10 million debt funding from Vantage Capital to acquire six grade A office buildings in East Cairo.
The acquisition is being made by Compass Capital’s existing real estate company, Bonyan for Development and Trade, which owns and operates the Walk of Cairo, an outdoor retail boulevard in West Cairo.
The office buildings were 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, the properties have an aggregate gross leasable area of 47 200 square metres.
The properties are fully tenanted by multinationals (including Nestlé, General Electric, Johnson & Johnson and Lafarge Cement) as well as large local Egyptian corporates.
The Walk of Cairo, the existing real estate asset owned by Bonyan, is located in Sheikh Zayed City, West Cairo and commenced operations in December 2020.
The open-air mall provides an extensive range of unique entertainment and experiential offerings such as the Museum of Illusions, a wax museum and an amphitheatre where weekly events are held.
The mall also offers a wide selection of food and beverage, lifestyle and retail outlets, hosting popular brands that include Natuzzi, McCafé, Espresso Lab and Core Gym.
Founded in 2010, Compass Capital is a Cairo-based private equity firm with a hands-on management approach.
Over the past twelve years, the firm has built an attractive portfolio of investments across pharmaceuticals, financial services and real estate.
The transaction represents Vantage Capital’s 33rd investment across four generations of mezzanine funds, with its portfolio spread across eleven countries in Africa.
“The transaction with Compass Capital marks our second investment into Egypt in as many years,” said Warren van der Merwe, Managing Partner at Vantage Capital
“With a population in excess of 100 million and an economy delivering resilient growth, it is a country with significant potential and a key target market for our firm as we look to deploy our newly-raised fourth mezzanine fund.”
Africa’s growing population and urbanisation are spurring significant investment into property developments across the continent.
Over the years, Vantage has provided substantial financial support to the sector. The company funded two neighbourhood shopping malls in Nigeria and Kenya.
In addition, it funded a hotel & commercial property group in Namibia, a leading owner & operator of hotels across Egypt’s Red Sea, as well as two residential property developments in South Africa.
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