Savannah & Sakura Hospitality Group — Funding Strategy & Structure
The sources and uses of funds, the R500 million capital structure across equity, senior debt and an additional facility, and the funding strategy underpinning SSHG.
Section 14 · Business Plan
Funding Strategy & Structure
The sources and uses of funds, the R500 million capital structure across equity, senior debt and an additional facility, and the funding strategy underpinning SSHG.
SSHG seeks to raise R500m to fund the development of the integrated
eight-division platform over a phased 60-month programme. The structure
blends equity, senior debt and asset finance to optimise the cost of
capital while preserving prudent gearing and debt-service headroom
throughout the build.
14.1 Sources & Uses of Funds
| Sources of funds | R’m | Uses of funds | R’m |
|---|---|---|---|
| Equity | 250 | Cape Town flagship | 60 |
| Senior debt | 200 | Johannesburg flagship | 55 |
| Asset finance | 50 | Stellenbosch flagship | 45 |
| Casual-dining rollout | 65 | ||
| Culinary retreat estate | 110 | ||
| Culinary academy | 20 | ||
| Central production kitchen | 18 | ||
| Technology | 15 | ||
| Brand development | 18 | ||
| Working capital | 70 | ||
| Contingency | 24 | ||
| Total sources | 500 | Total uses | 500 |
Table 21. Sources and uses of funds
(R’m).
14.2 Capital Structure & Terms
The proposed structure comprises R250m of equity (50% of the capital
programme), R200m of senior debt and R50m of asset finance against
identifiable plant and equipment. Senior debt carries a blended cost of
approximately 13%, a Year-1 interest-only grace period aligned to
commissioning, and a seven-year amortisation profile. This structure
holds opening gearing below 50% and de-levers steadily, reaching 19.7%
by Year 5.
• Equity — R250m (50%): risk capital funding flagships, estate and
brand. • Senior debt — R200m (40%): ~13% blended, Y1 grace, 7-year
amortisation. • Asset finance — R50m (10%): secured against plant, equipment and
vehicles. • Development-finance participation is actively sought given the
Group’s strong job-creation and transformation profile.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Savannah & Sakura Hospitality Group (Pty) Ltd.