Pam Golding Properties' International Division has been appointed to exclusively market globally the very first Integrated Resort Scheme (IRS) to be launched in Mauritius - the Tamarina Golf Estate and Beach Club.

The first such project, following the granting of IRS approval to the Medine Sugar Corporation, will comprise a boutique hotel with 119 completed luxury villas ranging from 350 to 600 square metres, a championship 18-hole golf course designed by Australia's Rodney Wright (who has designed other courses in Singapore and elsewhere in Mauritius), and a private beach club. The villas will be marketed at an average selling price of US$750 000. The 103ha site is in a prime location on the popular south west side of Mauritius near the landmark Sugar Beach Resort and Le Morne Mountain.

Over the past two years PGI (Pam Golding International) has been involved in assisting the development process and the official governing body, the Board of Investment (BOI), which implemented the scheme and which oversees the new legislation.

Comments Dr Andrew Golding, CE of the Pam Golding Property group, which has an office in Mauritius as well as over 400 offices and associated offices worldwide and is a member of UK's leading real estate group, FPDSavills: "Legislation in Mauritius has recently been amended to allow foreign ownership of residential property in terms of what is known as IRS - Integrated Resort Schemes. Previously, foreign investors were only permitted to acquire property if they invested a minimum of US$500 000 into the economy via a business or other form of financial investment, and could then apply to purchase property.

"This wasn't a simple mechanism, but it was in place in order to attract foreign investment, which was more specifically driven by the fact that the sugar industry, which is a high income earner for the country apart from tourism, is under threat due to world prices and cost of production. Mauritius currently receives internationally subsidised sugar prices, a status quo which comes to an end in 2006.

This has necessitated contingencies to reduce workforces, thereby resulting in a major voluntary retirement scheme for the industry. This has in turn led to owners of sugar plantations being allowed to sell off pockets of their tracts of land in order to: increasing housing infrastructure for the local community; fund these retirement schemes; and sell certain identified tracts of land to foreigners under the new IRS legislation," says Dr Golding.

"Foreign acquisition of property in Mauritius is now far more accessible"
The IRS legislation compels owners of the land to create a resort type environment where among others, a golf course/hotel component and individual villas will form part of the resort activity. The villas can be sold to foreign investors with a minimum entry level of US$500 000. Also, foreigners can now directly buy property in these schemes, which would further entitle them to apply for residents' permits.

Adds Dr Golding: "Foreign acquisition of property in Mauritius is now far more accessible, plus there is a lifestyle component attached to the property - a key factor among international investors seeking idyllic island real estate opportunities which already include other locations such as Barbados and the Cayman Islands."

Says Louis van Niekerk, who heads up PGP's International Division: "With the launch of this first resort scheme there are limited opportunities and we believe not only will we see high interest among international buyers seeking a second or leisure home with an appealing lifestyle, we anticipate a demand also from professional people or those who are able to relocate their international business to a permanent residence in Mauritius, where the tax status is beneficial to those in countries with high tax rates.

"Previously, Mauritius has been primarily a beach destination, but now it has the potential to become a major golfing destination, with four or five world class golfing resorts in the pipeline. The existing golf courses are already over subscribed and there's a natural demand for golfing opportunities there - the most recent being the Sol Kerzner developed golf course at Ille aux Cerf, opposite the Le Tousse Rock Hotel."

Van Niekerk says due to the stringent development requirements and limited opportunities, these properties will be highly sought after, further underpinned by the fact that Mauritius is politically stable and has an already well established and growing tourism market with a sound infrastructure. "We believe this will result in significant capital growth in property values at these new resort developments."

Following extensive research PGI anticipates the bulk of investors will be from the UK, France, Scandinavian countries and other central European countries, together with African investors that already know the island and frequent it. Interest is also expected from Russia and the Netherlands.

For further information contact Fabrice Orengo de Lamazière of PGI on (021) 762 2617.