Financial solutions company Fedgroup has concluded a senior debt refinancing facility in excess of R1-billion to support the continued expansion and finalisation of Seaton and Lalela Estates on KwaZulu-Natal’s North Coast.

Through the consolidation of existing debt into a single senior facility, Fedgroup has become the sole funder of the estates’ next phase of development.

The multifaceted funding solution enables Collins Residential to complete infrastructure across the more than 430 ha that comprise the estates, including roads, utilities and lifestyle amenities.

The facility also supports the delivery of social infrastructure, including the Seaton House school, Fedgroup points out.

The transaction forms part of Fedgroup’s growing alternative capital provision capabilities, which focus on structuring disciplined, asset-backed funding solutions across property, agricultural, and other specialised sectors, the company highlights.

Fedgroup Alternative Asset Management partner Jason Green says the refinancing demonstrates the importance of certainty and execution in a complex funding environment.

“We are proud to partner with the Collins Residential team and support the next stage of investment in these estates. The solution we have put in place provides the structured capital required to continue the strong momentum the developer has maintained across the estates and enables the delivery of further housing opportunities, amenities and critical infrastructure.

“Senior debt financing of this nature requires rigorous due diligence, clear alignment between stakeholders and a deep understanding of the underlying asset. Our focus was on delivering a solution aligned to the development’s timelines while ensuring a disciplined capital structure,” he comments.

Seaton Estate is a mixed-use development along the KwaZulu-Natal North Coast.

Fedgroup has established a footprint in the province over several years.

The group previously provided finance within the Zimbali Coastal Resort and Estate and has deployed capital into agricultural ventures across KwaZulu-Natal.

“Partnering with Fedgroup has been an eye opener for us. The funding solution was structured, contracted, and executed in under four months, which is exceptional for a transaction of this size and complexity.

“The finance is both measured and enabling, allowing us to maintain delivery momentum on the ground while progressing key infrastructure and community assets,” says Collins Residential FD Jon De Bufanos.

ENSafrica acted as advisers to Fedgroup on the transaction.