Executive Summary

Westerhaven Estate is a 101-hectare Atlantic beachfront development at Dwarskersbos, Western Cape — 2.84km of direct ocean frontage, among the last privately controlled development-ready coastal holdings on South Africa's West Coast. The masterplan comprises 621 residential homes, a 200-unit retirement village, a healthcare precinct,and boutique hotel, with RLB Africa-certified GDV of R5.0bn (US$308M). The sponsor seeks a US$10.79M senior secured bridge facility (18 months, 50% LTV) to complete land acquisition and activation. Security: first-ranking mortgage bond over land independently valued at R350M/US$21.58M (RICS Red Book, Valuetec) — 2.00× cover, with entry at 29% of appraised value. Rights are vested and non-lapsing; EIAs granted. Exit: Investec Structured Property Finance (mandate confirmed April 2026), with 10% non-refundable deposits to be held in attorney trust. Presales execution via Bridgegate and Launchbase (R8.6bn cumulative sales). US$10.79M senior secured bridge, 18 months, Prime +4.5%. First-ranking mortgage bond over land : RICS R350M (US$21.58M) at 50% LTV, 2 × cover, entry at 29% of appraisal. Exit: Investec SPF (mandate confirmed) at 80% presales with deposits in attorney trust. Seven-instrument security package offer. **~2,950 characters:** --- Gavin McInnes — Managing Director 20+ years in hospitality and heritage property development origination. Countersigned commercial documentation with Hilton Worldwide (2011) and Marriott International (2022 — St. Regis brand engagement, Cape Town). Heritage portfolio includes conversion proposals for the Old War Office, London (subsequently opened as Raffles London) and Wentworth Woodhouse, and the Apple Express heritage rail revival. Panelist, 14th Annual Africa Property Investment Summit (2023); preferred bidder status in the Rebosis business rescue process for Grand Central, Cape Town (2023). BA Honours cum laude, University of Pretoria. Asset verification: Deutsche Bank Alex. Brown, USD 70M in AAA-rated instruments. Elizabeth Diedericks — Director 25 years in South African banking: Standard Bank (1994–2011) and Absa (2011–2019). Institute of Bankers Marketing Diploma, second-highest national ranking. 50% shareholder of every group entity since 2004 — a 20-year working partnership with the Managing Director. Oversees operations, compliance, and stakeholder management. Alignment: Both principals hold 100% of the equity and provide joint and several personal suretyship for the full facility amount. Neither can exit the project without the lender being repaid in full. Institutional Delivery Bench The principals are supported by contracted institutional specialists rather than an in-house speculative team — a deliberate structure that puts execution risk with proven operators: — RLB Africa (Quantity Surveyor): independent R5.0bn GDV certification; Level 1 B-BBEE; CEO Nicolas Sheard. — Valuetec (Valuation): RICS Red Book appraisal at R350M; Ricardo Gouveia, Reg. 6378/8. — STBB Attorneys (Conveyancing & deposit custody): conveyancer of record for Balwin Properties, South Africa's largest listed residential developer; all presale deposits ring-fenced in attorney trust with cession to lender. — Investec Structured Property Finance (exit lender): mandate confirmed April 2026; active engagement at director level. — Kholo Capital (mezzanine): R1.4bn fund founded by former Vantage Capital partners Zaheer Cassim and Mokgome Mogoba. — Geoff Blight / WBHO (Advisory (construction & procurement): delivery record includes Cape Town Stadium, One&Only Cape Town, Zeitz MOCAA, and GrandWest Casino. — Bridgegate Invest (presales): exclusive 8-month mandate; PPRA-registered practitioner (FFC 2023134687). — Launchbase** (digital sales platform): 64 projects, 3,385 properties sold, R8.6bn cumulative sales value; record launch day of R312M. Every function on which the credit depends — valuation, quantity surveying, deposit custody, construction, presales, and exit financing — sits with an independent, verifiable institution. Westerhaven DevCo (Pty) Ltd is a special-purpose development vehicle in the pre-revenue, land-acquisition phase. It has no trading history to report; financial performance is therefore presented as balance sheet position, embedded asset value, and contracted forward economics — the metrics on which a development credit is properly assessed. Asset position and entry economics. The company's principal asset is the contracted acquisition of 101 hectares of Atlantic beachfront at Dwarskersbos at US$5.43M, against an independent RICS Red Book valuation of R350M (US$21.58M) by Valuetec — an entry basis of 28.7% of appraised value. Development rights are vested and non-lapsing, Environmental Authorisation is granted, and the CapeNature right of first refusal has been permanently extinguished — embedded regulatory value that cannot be replicated under current coastal planning regimes. Forward economics. RLB Africa has independently certified GDV at R5.0bn (US$308.3M). Phase 1: sell rate US$151–153/sqft against build rate US$88/sqft — a US$63/sqft gross margin locked through fixed-price construction contracts with surety. Projected Phase 1 net profit is US$11.7M at 26–30% IRR, exceeding the entire proposed facility. Cash-neutrality at ~40 sales; the institutional exit trigger fires earlier, at 28 signed OTPs with 10% non-refundable deposits in STBB attorney trust (R21M–R25.6M at trigger). Near-term operating income. On transfer, the Soverby Lapa hospitality business is leased back to its current operators, generating rental income from day one of title to offset Phase 1A holding costs — treated as cost offset, not debt-service capacity. Funding structure. The proposed US$10.79M senior secured bridge is 50% LTV against the RICS valuation and 3.5% of certified GDV, at Prime +4.5% over 12 months. As-is land value alone (US$9.33M, excluding all development premium) covers 86.5% of the facility before a single unit is sold, with the residual covered by joint and several personal suretyship from both principals. Downside performance. Stress-tested recovery: 1.70× coverage at a 15% discount to RICS, 1.50× at 25%, 1.21× at 40%; a 50% haircut to the independent appraisal is required before principal is impaired. All figures at R16.22/US$1.00, subject to the assumptions and certifications in the full credit memorandum. Exit financing: Investec Structured Property Finance confirmed mandate fit in April 2026, with Kholo Capital (mezzanine, R1.4bn fund) and Mettle Construction Finance as parallel routes — no single-counterparty dependency. The Western Cape has overtaken Gauteng as South Africa's leading real estate investment destination, recording R9.12 billion — 45% of national institutional transaction volume (JLL SA Investment Review 2025/26). Structural demand is driven by semigration: the province captured 67% of inter-provincial relocations (FNB Estate Agent Survey), lifting its share of national migration from 31% in 2020 to 46% in 2023. Western Cape house price growth of +7.4% is more than double the national +3.2%, and foreign buyers account for approximately 40% of all SA transactions above R10 million (Lightstone). The West Coast corridor is the dispersion beneficiary of Cape Metro pricing: Yzerfontein +196% and Elands Bay +213% over ten years, with premium coastal supply structurally constrained — SPLUMA, NEMA, CapeNature conservation instruments, and UNESCO Biosphere protection make new coastal subdivision effectively impossible. Westerhaven holds vested, non-lapsing development rights predating this regulatory lock. Development finance conditions are supportive: prime at 10.5%, Investec SPF's US$200M IFC-backed property development facility signalling institutional appetite for Western Cape residential. Semigration velocity has moderated from its 2022 peak, which the base case absorption assumptions already reflect.