W. P. Carey Inc., a global net-lease REIT specializing in corporate sale-leaseback, build-to-suit construction financing and the acquisition of single-tenant net-lease properties, announces that one of its managed non-traded REITs, has acquired a 266-room resort hotel, La Plantation d’Albion Club Med, located in Albion, Mauritius, for approximately €59 mln.
The facility is triple net-leased to Holiday Village Management Services Ltd, a subsidiary of Club Méditerranée SA, for an initial term of 15 years. The lease is guaranteed by Club Med, the renowned pioneer in all-inclusive resorts.
La Plantation d’Albion, Mauritius is comprised of 266 rooms and suites, two gourmet restaurants, three ocean view bars, two beaches and a health club, as well as three large swimming pools, a mini golf course and tennis courts. The resort is categorized as a 5-Trident resort, which is the highest level of quality offered within Club Med resorts worldwide.
One of only two Club Med 5-Trident resorts in the world, the property has shown stable performance since its development in 2007 despite wider global economic turmoil. It’s up-market focus and price point have enabled the resort to generate solid returns. Mauritius ranks 20th in The World Bank’s Ease of Doing Business Index, which evaluates economies based on how conducive the regulatory environment is to starting and operating a company.
The facility is leased for a period of 15 years. Rent is paid in euros with annual increases tied to the European Consumer Price Index. The lease is guaranteed by Club Med, a leader in the upscale all-inclusive resort space that owns, leases and manages 66 resorts and one cruise ship, with around 46,000 beds and related facilities.
Source: W.P. Carey