the State land situated at Bel Ombre leased to KPMM (Mauritius) Ltd., for a proposed hotel development proje…
(No. A/52) Dr. Ms B.Thannoo (Second Member for Quartier Militaire & Moka) asked the Minister of Housing and Lands whether, in regard to the State land situated at Bel Ombre leased to KPMM (Mauritius) Ltd., for a proposed hotel development project, he will state – (a) the terms and conditions thereof and whether any breach thereof has been identified; (b) whether same was used as collateral for securing financial facilities, and (c) whether consideration will be given for the – (i) termination, non-renewal or repossession thereof, and (ii) beach thereat to be declared public as it is located within the UNESCO Biosphere Reserve.
Reply: KPMM (Mauritius) Ltd holds a 60-year Industrial Site Lease starting from 14 November 2019, over an extent of 66,446.90 m² of State Land at Bel Ombre situated in the District of Savanne, for the development of a hotel and leisure project. In September 2024, a request by KPMM (Mauritius) Ltd for a change in purpose of the lease agreement from the development of a hotel and leisure project to a 5-Star Hotel under the Invest Hotel Scheme was approved. In regard to part (a), the terms and conditions are, inter-alia, as follows – i. The lease is valid for a period of sixty years expiring on 13 November 2079; ii. The lessee shall start construction by 01 October 2024 which should be completed within 36 months that is, by 30 September 2027; iii. The lessee shall not sublet, assign or pledge the whole or any part of its interest under the lease without the express authorisation of my Ministry; iv. The rental shall be paid annually in advance to the Government of Mauritius; v. There shall be no change in the ownership or the beneficial ownership or the ultimate beneficial ownership or the shareholding of the lessee’s beneficial owner or ultimate beneficiary until the project has become operational for at least one year, and vi. All necessary permits and/or clearances from all relevant authorities should be sought and obtained. As matters stand, KPMM (Mauritius) Ltd is in breach of the articles of the lease agreement – i. Article 3 - the site is still undeveloped, and ii. Article 6 - the outstanding rental arrears and interest as at 29 May 2026 amount to approximately Rs43 million. As regards part (b), I am informed that MauBank Ltd approved a banking facility of some MUR 683 million in favour of Kuros Construction Solutions Ltd, secured by a floating charge over the assets of KPMM (Mauritius) Ltd including the leasehold rights over the abovementioned State Land. With regard to part (c) (i), my Ministry is examining all possible avenues, including cancellation, resumption or such other measures as may be warranted under Article 13 of the Lease Agreement. With regard to part (c) (ii) a decision will be taken after the outcome as in part c (i) above. POLYTECHNICS MAURITIUS LTD – FINANCIAL SITUATION & EMPLOYMENT CONDITIONS