RMB Partners Kasada On Cape Grace’s Evolution
RMB Partners Kasada On Cape Grace’s Evolution. South Africa’s iconic Cape Grace Hotel is undergoing an evolution following its acquisition by Kasada Hospitality Fund LP (Kasada), with funding facilitated through its ongoing strategic partnership with RMB. For nearly 40 years, the Cape Grace has been a Cape Town landmark, and it has become globally renowned for impeccable service, elegant decor, and world-class amenities along with luxuriously appointed rooms.
Kasada, an independent real estate private equity platform dedicated to hospitality in Africa, acquired the historic hotel in 2022 and began the refurbishment project in early 2023. Upon completion of these extensive renovations, the hotel will become known as Cape Grace, a Fairmont managed hotel. RMB worked with Kasada on the acquisition, supplying a bridge finance facility to acquire the required shares. RMB then structured and provided a funding solution to fund the refurbishment as well as working capital requirements of the hotel operation.
The Cape Grace is currently undergoing significant changes to update it, while maintaining its history and legacy. Kasada’s aim is to bring it in line with higher environmental, social and governance as well as efficiency standards, delivering a world-class luxurious experience that is in keeping with a modern tourism industry. The renovations are due to be completed in December 2023.
Ram Lokan, Principal at Kasada says: “Acquiring the Cape Grace was a unique opportunity for us to expand our footprint in South Africa. RMB helped us with the acquisition and subsequent capex program by understanding our need to move quickly and find the best lending solution adapted to our needs and those of the asset. RMB’s experience in the industry, coupled with its agility in being able to deliver bespoke financing solutions, made them the ideal partner on this project.”
The funding package has been adapted over time to meet the changing needs of the client, while RMB has worked closely with Kasada to simplify the legacy structuring and make the financing more efficient. Reinhard Winsauer, Senior Transactor in RMB’s Real Estate Investment Banking team concludes: “The hospitality sector was hit hard by the pandemic, so we saw this opportunity to get involved with foreign direct investment in the local tourism industry as strategic. We believe this is a positive step in our country’s economic recovery and shows that we are indeed open for business.”
