Construction World September 2018

PROJECTS & CONTRACTS

Mauritius embraces DEVELOPMENT CHALLENGES In less than two decades, Mauritius has undergone an extensive economic transformation, deftly exchanging its diffident agricultural mantle for a new incarnation; one of the most competitive sub-Saharan economies dominated by flourishing real estate and development sectors.

Compagnie de Beau Vallon’s flagship project is not only the first of its kind in Mauritius under the PDS; it’s also the most challenging. Situated in the heart of a pristine coastal trip that is steeped in history and dotted with protected wetlands, Pointe d’Esny Le Village will be a sustainable, innovative inte- grated development incorporating residen- tial and commercial components as well as education, hospitality and sports facilities. Watkins says that rather than being a hurdle to overcome, Pointe d’Esny Le Village’s ecologically sensitive location is an opportunity to restore and maintain the area for the benefit of the residents as well as the area’s heritage. “The master plan is configured in such a way so as to optimise the natural beauty and afford all the residences stunning views with frontages across the landscaped areas and wetlands while creating a sense of living within a protected environment. It’s also no- table that less than 20% of the overall land footprint will be developed.” She adds that the key underlying objective of the project is to preserve the fundamental characteristics of the largely untouched south-east region; characteris- tics that include a strong sense of authen- ticity, rich history, abundant fauna and flora and the traditions of the inhabitants. It is also being marketed at price points that specifically allow for an integration of local and foreign residents. Considering the development site is just a tiny portion of a massive land area that has been under the umbrella of the Compagnie de Beau Vallon Ltée for more than a century, the company’s deep and intimate understanding of the region will be intrinsic in establishing a harmonious bal- ance between long-held traditional integrity and modern progress. “In recent years South Africans have become increasingly dominant in Mauritius property and their buying power is contrib- uting to the construction and real estate sector having become the second largest GDP-generator, according to statistics from the Board of Investment (BOI), now called the Economic Development Board (EDB). “According to the EDB, South Africans account for almost a third of foreigners who have bought property on the island in recent years, as it’s one of the few places in the world where the Rand has property investment value in a major global currency (the Euro) and is only a short flight from friends and family back home.” 

T his is largely due to the implementation of bold initiatives to attract foreign direct investment, including restructuring the finan- cial services sector and the introduction of the Integrated Resort Scheme (IRS) in 2002 which galvanised these previously compara- tively minor GDP sectors. Diane Watkins, Executive Director of Barnes International Realty in Mauritius, says the IRS afforded non-citizens the dual benefits of being able to purchase property on the island for the first time, as well as apply for permanent residence if their invest- ment was valued at USD500 000 or more. “Commercially the IRS was a phenomenal success with international purchasers and has brought substantial direct foreign invest- ment into the country. "Today, the PDS structure has rectified this flaw allowing for a natural integra- tion between foreign investors and local residents. It has since been amended twice to meet the growing demand and changing property landscape.” Christophe Curé is Group Property Manager for Compagnie de Beau Vallon Ltd, one of the oldest and most established com- panies on the island. Its mainstay remains in agriculture, but in the past 15 years its

interests have expanded into hospitality and development. Curé says: “The current Property Development Scheme (PDS) not only offers foreign investors much broader scope with more streamlined application and purchase processes, but is also structured to better promote inclusive development and integrate foreign residents with the local communities.” However, expeditious success and growth are invariably accompanied by a host of new challenges, especially in unique settings like Mauritius. “The most fundamental and enduring challenge,” says Curé, “is the fact that Mauri- tius is an island and most construction materials have to be imported. It makes it that much harder to develop at the right price and maintain the high standards and quality that investors have come to expect.” Another factor that wields considerable influence is the island’s size – or lack there- of. Covering a mere 2 040 km², development is further limited by the fact that a sizable chunk is protected with stringent preserva- tion regulations and many other areas are of cultural or historical significance. And while all new developments have had to take these factors into account,

36

CONSTRUCTION WORLD SEPTEMBER 2018