Mara Delta, a real estate investment fund, has acquired a 44.42% stake in Beachcomber Hospitality Investments (BHI), a subsidiary of the New Mauritius Hotels Group (NMH).
Bronwyn Corbett, CEO of Mara Delta, said: “We’re very excited to be partnering with industry heavyweight, New Mauritius Hotels, both as a co-investor and as a tenant. The transaction is structured in a way that allows us to invest up to €50m in Beachcomber Hospitality Investments”.
The first tranche of the fund’s investment totals €31.5m.
The investment consists of an equity portion of €12.5m and €19m in the form of a shareholder loan.
“Mara Delta also has an option – at our sole discretion – to invest a further €18.5m through a shareholder loan in future,” Corbett added.
She said that Mara Delta assumes no operational or hospitality risk.
“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,” she said.
The total transaction value is €162.56m, with the balance being funded by equity debt and shareholders loans.
The total cash consideration received by NMH will enable the group to improve its cash flows through the reduction of its indebtedness and optimisation of its financing structure.
BHI will not be listed on the Stock Exchange of Mauritius and will have NMH and Mara Delta as its sole shareholders.
Established in 1952, NMH is one of the leading hotel groups in Mauritius, where it owns eight 4 and 5 star hotels, operated under the Beachcomber brand.
As part of the deal, three Beachcomber hotels, known as Le Mauricia Grand Baie, Le Victoria hotel and Le Canonnier, sold to BHI will be leased to NMH.
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.
Broll Indian Ocean Ltd, an independent external chartered valuer, has attributed a value of €156m to the properties on November 14, 2016.
Okan, a strategy consulting and financial advisory boutique focusing on Africa, acted on this operation as strategic and financial advisor to NMH.
In October 2016, Mara Delta acquired the Tamassa Resort in Mauritius for a purchase consideration of the euro equivalent of $40m.
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.