Mauritius News

Mara Delta successfully acquires Mauritian Tamassa resort

Tamassa Resort, located in Bel Ombre on the south western coast of Mauritius.
The Tamassa Resort, located in Bel Ombre on the south western coast of Mauritius.

– Acquires 214 room Tamassa Resort in Mauritius from SEM listed Lux Island Resorts.
– No direct hospitality risk for Mara Delta; only counter party exposure to listed Lux group.
– 10 year Euro-denominated lease term, underpinned primarily by European market.
– Acquisition anticipated to enhance Mara Delta’s previously forecasted distributions.
– Mauritius asset base now represents 13.8% (based on value) of total assets, in line with diversification strategy.

Mara Delta (formerly Delta Africa), the first multi-listed property fund to offer international property investors direct access to immediate high growth opportunities on the African continent outside of South Africa, today announced the successful acquisition of the Tamassa Resort, located in Bel Ombre on the south western coast of Mauritius.

Bronwyn Corbett, Chief Executive of Mara Delta commented:

“We are very excited about this acquisition, our second in Mauritius and the first into a new asset class. The acquisition is expected to enhance our previously forecasted distributions”.

“The lease is denominated in Euro’s, reducing our currency risk. It is also important to note that we won’t take on any direct hospitality risk as the transaction is on a sale and lease back basis under a 10 year fixed triple net lease, with the tenant obliged to fully repair, maintain and insure the property”.

“The seller, Lux Island Resorts Limited is listed on the Mauritian Stock Exchange and one of the largest hotel chains on the island and will guarantee the lease payments over the duration of the lease back.”

The rental due under the lease back comprises a fixed rent component that generates a purchase yield of 9.98% as well as a variable portion, which is excluded from yield calculations, in line with Mara Delta’s conservative approach to feasibility.

Broll Indian Ocean Limited in August 2016 independently valued the property at USD 42.3 million. Mara Delta will fund the purchase consideration, which is the Euro equivalent of USD 40 million through the issue of Mara Delta ordinary shares to existing and interested new investors and debt.

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.

The resort has been successfully operating for more than nine years and is ranked 7th on Trip Advisor out of 178 hotels in Mauritius. In this competitive environment, the hotel over the past three years consistently the Mauritian market occupancy rate according to the 2016 STR Global Report.

The Company anticipates to effectively take ownership of the assets on 31 March 2017, subject to the fulfilling of suspensive conditions typical to transactions of this nature.