United Africa Group (UAG) has received US$5.3 million in funding towards the construction of the 181-key, three star Hilton Garden Inn hotel in Windhoek from Vantage Capital, a south African-based firm.
The debenture funding will be used to support the group’s equity contribution in the construction of the Hilton Garden Inn, while the growing tourism industry in Namibia has been a major driver that motivated the funding of the project – this is in addition to the already existing five-star Hilton hotel.
The new hotel will be fitted with all the amenities to give it a world-class business status as well as a leisure hotel. These will include among others a swimming pool, gym, sundeck and roof garden. Its proximity to the Hilton Windhoek Hotel will also make it possible to share services, including conference facilities.
Warren van der Merwe, Vantage Capital’s chief operating officer, expressed his delight in partnering with UAG for their first investment in Namibia and Vantage’s 21st mezzanine transaction overall.
Since coming into existence, UAG has grown exponentially to become one of the leading hospitality and property-owning groups in Namibia, with ten already existing hotels in its portfolio nine operated by Protea and one by Hilton in addition to commercial real estates.
David Kornik, an associate partner at Vantage Capital said Vintage Capital has been looking for avenues to fund so as expand economic development and therefore this investment will be a good initiative in supporting the growth and expansion of local businesses.
He is optimistic the investment will go a long way in boosting the tourism sector as well as causing an overall growth of the Windhoek’s city centre.
UAG’s chief executive officer, Willem Mouton, expressed his delight on behalf of the group and said they are happy to bring Vintage on board adding that their long time experience in Africa will be useful to the current and future prospects of the tourism sector in Namibia.