IHS projects in Mauritius (Invest-Hotel Scheme)
Invest Hotel Scheme
The Invest-Hotel Scheme (IHS) allows hotel developers to finance the development of a hotel project by allowing them to sell villas, suites, rooms or other components that form part of the hotel to individual buyers.
The Invest-Hotel Scheme thus provides:
For the development of a hotel on either freehold or leasehold land of more than 1 hectare where units, villas, suites or other parts of the hotel can be sold; that the buyer of a unit enters into a lease agreement by which the property is leased back to the seller; and That the unit leased to the seller may be used and occupied by the unit owner or any person on his behalf for a total of not more than 45 days in any period of 12 months.
Engaging in the Invest-Hotel Scheme
A company intending to invest under the Invest-Hotel Scheme has to apply to the Board of Investment for an IHS Certificate. The application must be submitted as per the guidelines issued by the Board of Investment.
Under what principle the Invest-Hotel operates?
Under this scheme, the hotel building is divided into private and common units. The full freehold ownership of the private units is passed to the respective owners whilst the common units (e.g. entrance lobby, garden and roof) are collectively owned in “condominium “proportionally relating to the size, situation and nature of private space held by each owner.
The sale of units or other parts of the hotel is thus made with a “condominium regulations” that permits the owner of a unit/property to acquire the full freehold ownership of his unit or property, hence dividing occupation of the property.
The IHS Company has to create a Syndicate des condominium (an association) and the unit owners will be, ex officio, grouped as members in the Syndicate of condominium.