September 21, 2016

Mara Delta to expand into Mauritian Hospitality Sector

Dolapo Omidire

In late August, Mara Delta (formerly Delta Africa) advised it’s 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 $40 million on a cash free, debt free basis.

Commenting on the prospective acquisition, Bronwyn Corbett, Chief Executive of Mara Delta explained:

“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 Resort, Mauritius. Image Source: Thomson.co.uk
Tamassa Resort, Mauritius. Image Source: Thomson.co.uk

Pictured above, 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 capitalisation of RS8-billion (c. $228.5-million) and one of the largest hotel chains on the island with a proven track record.

The acquisition is subject to the usual approvals from the Board of Investment of Mauritius and the exchange and execution of a binding sale and purchase agreement acceptable to the parties.

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