SOUTH AFRICA – Kasada Capital Management (Kasada), the investment platform within Kasada Group dedicated to hospitality investments in Sub-Saharan Africa, has announced the acquisition of the 120-key Cape Grace hotel in Cape Town, South Africa.
“This acquisition marks our entry into the South African hospitality market, the largest in Africa. The Cape Grace is a great addition to our existing hotel portfolio and we look forward to bringing our knowledge and expertise to this iconic asset,” Olivier Granet, Kasada’s Managing Partner and CEO, said.
“Our value creation strategy will be driven by our sustainability values and highest ESG standards for the benefit of our guests, employees and local communities.”
Originally opened in 1996, the Cape Grace is located in Cape Town’s Victoria & Albert Waterfront district and is one of Africa’s most iconic hotels. This acquisition will mark a new chapter in the property’s history.
With high ambitions for this Cape Town landmark, Kasada will renovate the hotel with the view of obtaining the EDGE green-building certification while keeping its legacy, unrivalled quality, and exceptional service which have been the essence of this exceptional property.
“We are delighted to have completed this important acquisition in Cape Town. It demonstrates our continued ability to structure and execute transactions across hotel segments and geographies,” David Damiba, Kasada’s Managing Partner and CIO added.
“With the acquisition of the Cape Grace and our subsequent capex commitment, we continue to believe in the resilience of the African hospitality market and confirm our positioning as a leading investor and solution provider in the hospitality sector on the continent.”
IFC was to extend up to US$160 million of debt funding to Kasada, backing its plan to support the hospitality sector and instil globally recognised ESG practices in its hotels.
The first loan granted by IFC, in collaboration with Proparco as a parallel lender is to finance, on a long-term basis, Kasada’s acquisition of eight Accor-managed hotels, run under the Pullman, Novotel and Ibis brands, in Abidjan, Ivory Coast (4 hotels); Dakar, Senegal (3 hotels); and Douala, Cameroon (1 hotel). Kasada completed this acquisition on December 31, 2020.