Kasada Hospitality Fund in line for IFC loan

The IFC is proposing a senior loan package of up to $160 million to Kasada Hospitality Fund LP for its first phase capital deployment, which targets the establishment of a portfolio of up to 20 hotels (estimated 4,000 hotel keys) requiring a total investment (debt and equity) of approximately $400 million. The fund is managed by Kasada Capital Management.

Kasada’s own capital deployment and the related IFC loans will be structured as discrete sub-projects, each of which will be progressively reviewed by IFC and will be subject to standardised investment criteria. The first such sub-project is Project Awale and subsequent sub-projects are expected to align with Awale in terms of the proposed financial arrangements.

Project Awale comprises Kasada’s acquisition of eight existing Accor-managed hotels (run under the Pullman, Novotel and Ibis brands) in Abidjan, Dakar and Douala; operating liquidity injections to ensure the functioning of the hotels in the Covid-19 pandemic environment; and capital expenditure to refurbish/improve the properties and to achieve higher operating efficiencies.

Kasada Hospitality Fund LP held its first close with equity commitments of over $500 million. It is a sub-Saharan Africa hospitality sector-focused, private equity fund, with two limited partners: the Qatar Investment Authority and Accor. Kasada is the first large-sized, professionally sponsored and managed hospitality investment platform in sub-Saharan Africa. Over the next three years, Kasada plans to build a high-quality portfolio of hotels in sub-Saharan Africa.

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