Finance Request Summary: Boutique Hotel Acquisition - Villa Castollini

Executive Summary We present a unique opportunity for structured debt participation through a Corporate Loan Note (CLN) or Bridge Facility, designed to support the acquisition and repositioning of Villa Castollini — a trophy hospitality asset in the Garden Route, South Africa.

a conference room with a large table and chairs

The project, headed by Charl Hattingh, an experienced operator and international investor, involves the acquisition and transformation of this operating guesthouse into a 30-room boutique hotel with diverse revenue streams and strong asset appreciation potential.

We are offering participation in a R16.8 million structured debt instrument, secured against the underlying asset, with defined terms and multiple exits — including refinance, revenue-based repayment, or buyout.

a conference room with a large table and chairs
a room with a bar and stools
a room with a bar and stools

Capital Structure Overview

Total Purchase Price: R59,999,999 VAT Zero-Rated via Seller’s Trust

Senior Bank Debt (1st Position) R41,999,999 In Principle Approved

Structured CLN / Bridge Note (2nd Position): R16,800,000 Seeking Participation

Buyer Equity Injection: R6,000,000 Allocated for upgrades

Escrow Contribution R1,100,000 Compliance mechanism under NCA

black and brown wooden table near blue padded chair

Structured Debt Offering – Key Terms

Facility Type: Corporate Loan Note / Bridge Loan

Amount Sought: R16.8 Million

Term: 24–36 months (with early exit/refi optionality)

Interest Rate: Target 12%–14% p.a. (negotiable)

Security: 2nd Mortgage Bond + Personal Guarantee + Revenue Waterfall

Use of Funds: Acquisition support + renovation buffer

Exit Options: Bank refinance, income-based repayment, equity event

black and brown wooden table near blue padded chair
a room with a bar and stools
a room with a bar and stools

Use of Structured Funds

  • Immediate liquidity support for acquisition (bridging seller carry)

  • Fast-tracked renovation rollout to increase NOI

  • DSCR improvement to expedite refinance

black and brown wooden table near blue padded chair

Investment Thesis

  • Undervalued Asset: Property trading below regional luxury comps

  • Revenue Diversification: Accommodation, venue hire, bar, and tour contracts

  • Upside Leverage: 10-room guesthouse → 30-room boutique hotel

  • Backed by Private Capital: Equity + escrow in place

  • Defined Exit Strategy: Cash-out refinance planned within 24–36 months

black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair

Current Performance & Projections

  • Guesthouse: Active R300,000/mo (pre-upgrade)

  • Venue (Zabella’s): Licensed, pausedR15,000–R20,000/day

  • Bar: Operational R1.5M/year

  • Tour Group: Contracts, Secured R3M/year

  • Post-Upgrade Forecast: R20M/year (accommodation only)

black and brown wooden table near blue padded chair

Security & Guarantees

  • Second Mortgage Bond over title deed

  • Personal Guarantee from buyer/operator

  • Structured payout waterfall favoring investor

  • Legal/Compliance support engaged (Hospitality-specialist legal firm)

black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair

Buyer & Operator Profile

Charl Hattingh

  • International investor (U.S., NZ, Australia) with active SA expansion strategy

  • Hospitality & asset repositioning experience

  • R7.5M private capital backing

  • Strong compliance, strategy, and deal management capabilities

black and brown wooden table near blue padded chair

Exit & Repayment Strategy

  1. Stabilized NOI → Cash-Out Refinance (target: 24–36 months)

  2. Revenue-Based Repayment Option (DSCR > 1.5)

  3. Buyout / Equity Event with strategic partners

  • Debt amortized through NOI from upgraded operations

black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair

Legal & Deal Readiness

  • Signed Letter of Intent (LOI) from the Seller

  • Escrow Verification (funds held)

  • Secured 70% senior bank financing

  • Financial Model & Sensitivity Analysis

  • Zoning & Title Due Diligence underway

black and brown wooden table near blue padded chair
black and brown wooden table near blue padded chair

Why Participate?

  • 12–14% structured yield, secured

  • Short duration with multiple exits

  • High-quality asset with international tourism appeal

  • Strategic buyer with real capital at risk

  • Full transparency and reporting framework

black and brown wooden table near blue padded chair

Exit & Repayment Strategy

  • Cash-out refinance within 24–36 months post-stabilization

  • Debt amortized through NOI from upgraded operations

  • Optional equity exit via JV or strategic acquisition partner

black and brown wooden table near blue padded chair

Conclusion

This is a bankable, asset-backed transaction with upside in equity, income, and regional hospitality demand. We invite you to participate as our secondary lender, with strong alignment from buyer, seller, and pre-approved banker.

Attachments:

  • Financial Model

  • Property Valuation Summary

  • Buyer Profile & Track Record

  • Building Plans & Zoning Support

  • Letter of Intent (signed)

  • Confirmation of Escrow Funds

photo of dining table and chairs inside room

Charl Hattingh

Born and raised in SA, combines international structuring

with deep local insight - hospitality & real estate investor in

New Zealand, Australia and in U.S. - with active SA expansion.

Founder, Investor Liaison & Strategy Lead

[email protected]
+27 072 681 1150

photo of dining table and chairs inside room

Meet Your Team

We’ve identified the following key roles critical to the success of this conversion and repositioning. These will be filled by a combination of direct hires and strategic partnerships upon closing:

  • Founder & Principal: Charl Hattingh, driving vision and execution

  • Hospitality Lead: To be appointed — candidates with boutique hotel experience engaged

  • Financial Oversight: Shortlisting 3 reputable SA-based accounting partners

  • Construction PM: Industry-vetted local operator pending terms

  • Compliance & Legal: Consultation secured with hospitality-focused firm

  • Brand & Revenue Lead: In-house or agency role depending on phase

To ensure a seamless transition and sustained performance, we will retain select key staff from the current Villa Castollini team.

These team members bring valuable on-the-ground experience, supplier relationships, and hospitality know-how — providing immediate operational continuity.

Oversight and strategic direction will be led by Charl Hattingh and our leadership team, who are responsible for executing the repositioning, capital upgrades, and financial optimization.

FAQs

Your Questions Answered: Quick, Clear Commercial Real Estate Guidance.

What’s the security/collateral if things go wrong?

The R16.8M loan will be secured with a 2nd mortgage bond over the property.

The asset is a fully operational luxury guesthouse in a sought-after tourist region (Garden Route) with a conservative valuation exceeding R60M.

Additionally, the borrower (Charl Hattingh) will provide a personal guarantee, and an escrow reserve will be held for early-stage commitments.

Optionally, a revenue-sharing clause can be built in to allow the noteholder to benefit from upside until repayment.

What is the exit strategy, and how do we know you can repay in 24–36 months?

The exit strategy is twofold:

Cash-Out Refinance: Upon completion of the 30-room upgrade and 12 months of stabilized revenue, we qualify for traditional refinancing, with DSCR projected at 1.6+.

Revenue-Based Repayment: If a refi is delayed, we can service the note from operating cash flows with high visibility across diversified streams.

Backup strategies include a strategic sale, JV equity buyout, or seller recapitalization.

We’re happy to share both a detailed 3-year cash flow model and a refinance plan with timing scenarios. We’ve also included property comps and bank interest confirmation for the R41.99M senior debt.

Why aren’t you funding the full R16.8M privately if the deal is that good?

We’ve already secured R7.5M from private investors and are putting R6M of our own equity toward upgrades.

The additional R16.8M fills a strategic liquidity gap :

Rather than dilute long-term equity or delay the project, we’re offering a fixed return, asset-backed investment that aligns perfectly with short-term lenders.

We believe in keeping capital efficient—this bridge note gives you a strong return while we preserve ownership upside for the long term. It’s a classic win-win.

What happens if costs overrun or tourism slows down?

The budget includes a contingency buffer of R1M, and renovations will be done in phases to reduce capital strain.

Revenue is diversified across rooms, bar, venue hire, and tour contracts—reducing dependency on a single income source.

Garden Route tourism has remained resilient post-COVID, and existing contracts provide baseline revenue.

Who is the operator, and what track record proves they can pull this off?

Charl Hattingh has experience across real estate and hospitality sectors in SA, NZ, and the U.S.

He has led multiple asset repositioning projects and brings private capital and strategic oversight.

A hospitality-experienced GM and on-site team will be engaged for day-to-day execution.

We’ve already vetted 3 top-tier accounting partners and a legal firm focused on compliance and governance.

References, operating bios, and past project snapshots are available on request. We’ve also pre-secured soft commitments from the current staff to ensure immediate operational continuity post-closing.

📌 This presentation is confidential and intended solely for evaluation by aligned banking partners.
No portion may be shared, reproduced, or acted upon independently without written permission from our Sponsor (Charl Hattingh).