The Invest-hotel Scheme. (Shared Ownership through Equity Participation)

Transcription

1 The Invest-hotel Scheme (Shared Ownership through Equity Participation)

2 The Invest-hotel Scheme (Shared Ownership through Equity Participation)

3 About The Scheme Invest-Hotel is a scheme designed to enable property developers to sell hotel rooms, villas, suites or any other part of a hotel to individual buyers. While this scheme paves the way to facilitate the overall financing of new hotel projects, it offers individual buyers all the facilities of an exquisitely-furnished new luxury resort hotel with amenities like F&B, full-service spas, health and fitness centres, resort-style pools, sophisticated business centres and maid service and the promise of rental income. The above enhancing features are now available to a wider cross-section of the Mauritian population who previously could not avail of such opportunities.

4 Project under Invest-Hotel Scheme (IHS) Approval of Project A hotel project under the Invest-Hotel Scheme must be approved by the Board of Investment. On approval of the project, an IHS certificate is issued to the company for the construction of a hotel where the units (rooms, villas, apartments or suites) and other parts of the hotel can be sold. Extent of Land A hotel project under the scheme can be developed on either freehold or leasehold land. The land, however, must be of an extent of at least 1 hectare. Basis of Sale The units or parts of the hotel may be sold on: the basis of a plan during construction phase or when the construction is completed. On acquisition, the buyer of a unit secures ownership title to a specific unit or part of the hotel. The definition and management of the units and other parts of the hotel are set out in a "règlement de copropriété" which is governed by the provisions of the Mauritian Civil Code. Eligibility for Purchase of Hotel Rooms, Villa or Other Parts of a Hotel The following may acquire a unit under the scheme: 1. a citizen of Mauritius 2. a non-citizen 3. a company incorporated in Mauritius 4. a société (partnership) registered with the Registrar of Companies 5. a trust managed by a trustee licensed by the Financial Services Commission Investment on Acquisition of a Unit or Other part of the Hotel No minimum investment on acquisition of a room, suite or other part of the hotel Minimum investment of US$ 500, 000 for a stand alone villa

5 Invest-Hotel Mechanism Sale And Leaseback After purchasing a unit, the owner is required to enter into an agreement whereby the property is leased back to the IHS Company. Use of Hotel Rooms The unit leased to the IHS Company may be used and occupied by the unit owner or any person on his behalf for a total not exceeding 45 days in any period of 12 months. Hotel Operator and Management Team Companies operating under the Invest-Hotel Scheme must hire the services of hotel operators whose credentials are acceptable to the Board of Investment.

6 Frequently Asked Questions What is the Invest-Hotel? The Invest-Hotel Scheme (IHS) allows hotel developers to finance the development of a hotel project by allowing them to sell villas, suites, rooms or other components that form part of the hotel to individual buyers. The Invest-Hotel Scheme thus provides: 1. for the development of a hotel on either freehold or leasehold land of more than 1 hectare where units, villas, suites or other parts of the hotel can be sold; 2. that the buyer of a unit enters into a lease agreement by which the property is leased back to the seller; and 3. that the unit leased to the seller may be used and occupied by the unit owner or any person on his behalf for a total of not more than 45 days in any period of 12 months. How do I engage in the Invest-Hotel Scheme? A company intending to invest under the Invest-Hotel Scheme has to apply to the Board of Investment for an IHS Certificate. The application must be submitted as per the guidelines issued by the Board of Investment. What is a unit? A unit is a room, villa, apartment or suite of the hotel. Who is a unit owner? Any person who has acquired a unit under the Invest-Hotel Scheme is a unit owner. Under what principle the Invest-Hotel operates? Under this scheme, the hotel building is divided into private and common units. The full freehold ownership of the private units is passed to the respective owners whilst the common units (e.g. entrance lobby, garden, roof) are collectively owned in "copropriété" proportionally relating to the size, situation and nature of private space held by each owner. The sale of units or other parts of the hotel is thus made with a règlement de copropriété that permits the owner of a unit/property to acquire the full freehold ownership of his unit or property, hence dividing occupation of the property. The IHS Company has to create a Syndicat des Copropriétaires (an association) and the unit owners will be, ex officio, grouped as members in the Syndicat des Copropriétaires. On acquisition of a unit, for how many days can I stay in the unit acquired? A unit acquired by an investor must be leased back to the IHS Company (seller) where the unit owner or any person on his behalf may use that unit for a total of not more than 45 days in any period of 12 months. Can the IHS Company sell other parts of the hotel? The IHS Company can sell any other part of the hotel on approval from the Board of Investment. Will an Invest-Hotel require a Tourism Enterprise Licence to operate as a hotel? An Invest-Hotel must be licensed by the Tourism Authority to operate the hotel.

7 Invest-Hotel Certificate Sale of Units - Signature of deed of sale including compulsory lease back agreement - Transfer of land to a Syndicat des Copropriétaires 6 1 Invest-Hotel Project Planning and Design - Acquire land rights (freehold or leasehold) - Apply for a letter of intent from the Tourism Authority Issuance of Invest-Hotel Certificate - Certificate issued by the Board of Investment 5 Invest-Hotel Certificate 2 Application for Invest-Hotel Certificate - Submission of application to the Board of Investment 4 3 Approval of Project Application for Secondary Permits and Licences - Issuance of a letter of approval by the Board of Investment - Land Conversion Permit, EIA Licence, BLP

8 The beautiful island of Mauritius, with its tropical climate and the genuine hospitality of its 1.2 million people, has attracted discerning visitors and investors for generations. As one of the strongest economies in Africa, with a bilingual workforce (French and English, plus Hindi and Cantonese) and a long tradition of private entrepreneurship, Mauritius is an attractive location for investors especially in the Hospitality & Property Development sector. Level 10, One Cathedral Square Building, 16 Jules Koenig Street Port Louis, Mauritius Tel : Fax : contact@investmauritius.com