NMH reinforces its hotel real estate fund through Beachcomber Hospitality

New Mauritius Hotels Ltd (NMH) announced that it has consolidated and restructured its investment in Beachcomber Hospitality Investments Ltd (BHI). BHI will now hold assets worth €320m (Rs15.5bn).

Upon completion of this exercise, BHI, which currently owns three hotels in Mauritius, including Canonnier Beachcomber, Victoria Beachcomber and Mauricia Beachcomber, will also expand its portfolio to include Ste Anne Hotel in the Seychelles, leased to Club Med.

Grit Real Estate Income Group Limited (Grit), as part of its 2022 strategy to scale back its investment in the hotel industry, plans to divest all of its shares in BHI by implementing a ‘scheme of arrangement’. NMH will therefore hold 100% of the ordinary shares in BHI.

Rs 1.1 billion in revenue

“The partnership with Grit has been of great benefit to NMH and has been instrumental in strengthening the company’s balance sheet. This restructuring will also provide NMH with a strong and diversified real estate fund. This will provide interesting opportunities for the institutional and retail investment community over the years. We expect BHI to generate annual rental income of over €22 million (Rs 1.1 billion),” said Gilbert Espitalier-Noël, CEO of NMH.

To fund this transaction, BHI will raise up to EUR 40 million (Rs 2 billion) on the stock market through the issuance of preference shares with a projected dividend yield of over 7%.

NMH, the leading hotel group in Mauritius, is thus boosting its position in the sector. The integration of the Ste Anne resort in the Seychelles will also provide development and diversification opportunities for BHI and NMH. This transaction is in line with NMH’s development strategy aimed at strengthening its position in the luxury hotel market in the Indian Ocean.