– Mara Delta to invest a total of up to €50 000 000 in Beachcomber Hospitality Investments Limited (“BIHL”).
– Initial investment consists of an equity portion of €12 500 00 for 44.4228% of BIHL.
– Balance of €19 000 000 in the form of a shareholder loan.
– Mara Delta has the sole discretion to advance a further loan of up €18 500 000 at a later stage.
– SEM listed New Mauritius Hotels Ltd is co-investing and underwriting the loan to BIHL.
– BIHL will own three premium hotels in Mauritius, leased back to New Mauritius Hotels Ltd.
– Mara Delta assumes no operational or hospitality risk.
– Euro-based, triple net lease over an initial 15 year lease term.
– Yield accretive acquisition, in line with Mara Delta’s diversification strategy.
Mara Delta today announced that it has concluded negotiations with New Mauritius Hotels Limited in a sale and leaseback transaction that will see the Company invest up to €50 000 000 in an entity owning three hotel assets in Mauritius.
Bronwyn Corbett, Chief Executive of Mara Delta commented:
“We’re very excited to be partnering with industry heavyweight, New Mauritius Hotels Ltd, both as a co-investor and as a tenant. The transaction is structured in a way that allows us to invest up to €50 000 000 in Beachcomber Hospitality Investments Limited”.
“The first tranche of our investment totals €31 500 000. Mara Delta will acquire a 44.4228% stake in Beachcomber Hospitality Investments Limited for an investment of €12 500 000 and the balance will be advanced by means of a shareholder loan”.
“Mara Delta also has an option – at our sole discretion – to invest a further €18 500 000 through a shareholder loan in future”.
“The transaction is yield accretive and provides us with European CPI-linked hard currency exposure over an initial 15 year term without us assuming any operational or hospitality risk.”
The total transaction value is €162 554 896, with the balance being funded by equity debt and shareholders loans. New Mauritius Hotels Limited is the other 55.6882% shareholder in BIHL.
The SEM listed hotel operator will transfer the three assets to BIHL, before leasing them back with the option to renew the initial 15 year lease for three successive periods of 10 years each. As tenant, NMH will also be responsible for the full repair, maintenance and insurance of the properties.
The rental under the lease comprises a fixed rent component, payable in Euro and is subject to an annual escalation over the lease term by the higher of either 1% or the annual Harmonized European Consumer Purchase Price Index.
The assets that will be transferred to Beachcomber Hospitality Investments Limited are:
Le Victoria hotel, a resort with 254 rooms, comprising a total gross lettable area (GLA) of 37 294 m2 and a weighted average gross rental per square metre of 11.23 US$ per month, located at Pointe aux Pigments, Pamplemousses.
Le Canonnier, a leisure resort and spa comprising 284 rooms and a GLA of 25 248 m2with a weighted average gross rental per square metre of 13.16 US$ per month, located at Pointe aux Canonniers, Pamplemousses.
Le Mauricia Grand Baie, a four-star resort in the heart of Grand Baie with 238 rooms and a GLA of 23266 m2 with a weighted average gross rental per square metre of 13.64 US$ per month, located at Rivière du Rempart.
Broll Indian Ocean Limited, an independent external chartered valuer has attributed a value of €156 000 000 to the properties on 14 November 2016.
The lease generates a purchase yield of 8.6%, which is accretive to Mara Delta’s distribution yield. In line with Mara Delta’s diversification strategy, Mauritius now constitutes 23% of the Company’s overall portfolio (based on value) and remains a primary investment destinations.
The transaction is subject to a number of suspensive conditions usually associated with a transaction of this nature and does not require shareholder approval in terms of the JSE Listings Requirements or the SEM Listing Rules.
