Mara Delta (formerly Delta Africa) has advised shareholders that it has entered into negotiations with Néréide Limited, a wholly-owned subsidiary of Lux Island Resorts Limited, to acquire the Tamassa Resort, located in Bel Ombre on the south western coast of Mauritius for a purchase consideration of the Euro equivalent of USD 40 million on a cash free, debt free basis.
Commented Bronwyn Corbett, Chief Executive of Mara Delta:
“Once successfully concluded, this acquisition will be our first foray into the hospitality sector, further diversifying our portfolio”.
“We are particularly attracted by the relatively high, hard currency yield of between 8% and 9% that the acquisition offers. The lease being negotiated is on a triple net, lease back basis over an initial ten year period, which means Mara Delta assumes no operational or maintenance risk.”
“The transaction further complies with our other investment requirements such as a strong counterparty in Lux Resorts as well as well as euro or dollar denominated leases.”
Tamassa is a four star beach hotel comprising 214 rooms in close proximity to golf courses, nature parks and other attractions such as the Seven Coloured Earths geological formations. The resort offers a bar, a nightclub, and two eateries, one of which serves Mediterranean cuisine. Other amenities include a spa, four pools and a tennis court, plus a gym, a kids’ club and a dive school.
Lux Resorts Limited is listed on the Stock Exchange of Mauritius with a market capitalization of R8 billion (approximately USD 228.5 million) and one of the largest hotel chains on the island with a proven track record.
The acquisition is subject to certain conditions precedent, including approval from the Board of Investment of Mauritius and the exchange and execution of a binding sale and purchase agreement acceptable to the parties.
Mara Delta consequently advised shareholders to exercise caution when dealing in their securities until the binding sales purchase agreement is signed. The Company expects to make a full terms announcement in this regard in due course.
