Land lease drip feeds $7 million


17-July-2004

The south-west Mahé parcel of land has been leased by the Compagnie Seychelloise pour la Promotion Hotelière (COSPROH) to Petite Anse Investments, a local company owned by Albwardy Investments of Dubai, for a period of 49 years, at a rent of US$150,000 per year.

But in an inflation beating tie-in the lease states that, if greater than $150,000, the annual rent will be charged at two percent of the company's annual tourist revenue.
The lease came into effect on June 9 this year and includes an option for a 50 year extension beyond the original 49 year lease.

News of the five-star, 55-suite and 19-villa resort was first announced in June, but details of the cost of the land have only just been released.

The development of the hotel is expected to require a $50 million investment and is provisionally due to open in late 2006.

Speaking at the time of the announcement of the new hotel, Albwardy Director, Philip d'Abo said that his company had chosen to invest in Seychelles because, "Most beautiful places have been messed up, they don't have any thought for the ecology, but here it has been kept in pristine condition. The people are very nice and if you feel welcome in a country you want to work there."

According to Mr d'Abo negotiations between Albwardy and the government had taken four years to conclude, with delays caused by the strict enforcement of environmental controls and the price asked by Cosproh for the sale of the land.

Once construction is complete the hotel is to be run by the well known Four Seasons chain and will likely create around 200 local jobs.

 

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