Standard Bank and Java Capital join forces on property deals

Collaboration aims to unlock capital for real estate and infrastructure growth Sector Head of Real Estate at Standard Bank CIB, Andrew Robinson. Picture: Marco De Agostino Standard Bank and Java Capital have entered into a partnership to raise and structure capital for real estate, infrastructure and other real-asset investments in South Africa, as improving financing conditions begin to revive dealmaking. The partnership brings together Standard Bank's financing capacity and client network with Java Capital's corporate finance, mergers and acquisitions and equity capital markets expertise. Standard Bank's head of investment banking in South Africa, Justin Bothner, said changing capital markets were forcing investors and companies to reconsider how transactions were structured. 'As capital markets evolve, clients increasingly need partners who can combine strategic advice, execution certainty and access to capital,' Bothner said. The collaboration comes as interest rates stabilise, property companies strengthen their balance sheets and discounts between listed property valuations and net asset values narrow. M&A activity has also started to return to the sector after a subdued period. Standard Bank CIB's sector head of real estate, Andrew Robinson, said the recovery was creating opportunities but would require funding beyond traditional sources. 'Balance sheets have strengthened, financing conditions are stabilising, and there is renewed appetite for M&A and investment, but the capital required to unlock this next phase of growth can't only come from traditional sources,' Robinson said. The partnership will target listed and unlisted property, private capital and infrastructure-related assets, with solutions spanning debt, equity, structured funding, capital raising and selected co-investments. Java Capital founding director Andrew Brooking said the partnership would allow the two firms to combine advisory and funding capabilities around transactions. 'This partnership creates an opportunity to broaden that proposition by closing any gaps between identifying an opportunity, structuring the right transaction, and securing the capital to execute,' Brooking said.