Stuart Chait sets up new Cape company

Posted On Tuesday, 03 June 2003 02:00 Published by
Rate this item
(0 votes)
Stuart Chait, one of the founders of Mvelaphanda Property Holdings, the Cape based property company, has left MvelaProp to set up a mezzanine finance and private equity group to assist property developers.
Stuart Chait, one of the founders of Mvelaphanda Property Holdings, the Cape
based property company, has left MvelaProp to set up a mezzanine finance and
private equity group to assist property developers. The new company will be
known as Property Partners.
Chait said that his move from MvelaProp had been 'entirely amicable' and
that he remains confident that MvelaProp has a great future as a bulk land
developer focussed on the unlocking of state and parastatal land for private
sector development.
"I had to cut my ties with MvelaProp", he said, "because it would have been
impossible to serve on the boards of both companies without a conflict of
interest in certain cases."
Chait revealed that for some years he had fostered an ambition to establish
a property development mezzanine and private equity finance operation which,
he said, would be available to all developers ranging from parastatals to
private sector developers.
To bring this about, he said, he had approached High Neal, one of the
largest UK based property finance and development groups, and they, together
with Javelin Capital, a corporate finance and advisory group, had agreed to
set up Property Partners, of which Chait will be Chief Executive Officer.
(Javelin Capital is headed by Phil Biden, formerly CEO of the Board of
Executors, John Braithwaite and David Pettit.)
Property Partners, said Chait, will in effect be an additional funding bank
for property developers, in most cases taking between 20% and 50% of the
equity in projects as a backup to the main lenders, the big South African
banks. The company, he said, will have a substantial capital base, and have
already financed developments valued at over R500 million.
"We will, he said, be able to offer skills in property trading and corporate
finance which are not available from many of the broader-based traditional
funders."
"We will be able to assist property developers to structure their deals so
as to make them acceptable to the major finance houses and banks, and in
general we undertake to see that our input adds value to any property
project."
This type of service, said Chait, had not been available in the South
African market previously and is being welcomed throughout the property
sector, because in recent years many viable deals have foundered as a result
of developers falling short of the major banks' funding criteria.
Chait said that speed would be one of the hallmarks of the new service. "We
will usually be able to make decisions and deliver within 24 hours," he
said. "We aim to create a platform from which developments will be launched
faster and more effectively than has hitherto ever been possible - and the
response has been so good that we are already predicting a commitment of R1
billion in our first year."


Publisher: Cape Business News
Source: Cape Business News

Please publish modules in offcanvas position.