DESROCHES ISLAND RESORT; SOLD!

Prince William and Kate holidayed there twice but the owner of the hotel and villas on the island has sold the property, possibly to a businessman from Gulf.

To the rest of the world, Desroches Island is just another luxury hideaway for the rich and famous renowned as much for its isolation as its opulence. To Seychellois however, it is the main island of the Amirantes group situated 230km to the southwest of Mahé and a symbol of the inaccessibility of a large swathe of the country’s patrimony to most of it citizens. Thus the recent announcement by Desroches Island Lodge (DIL), the owner of the island’s hotel and villas, that it has sold its property to an unnamed buyer, subject to government’s approval, caused little more than a ripple on the main islands. If our attempts to confirm the identity of the buyer were largely unsuccessful, unconfirmed reports suggest that it has been purchased by a businessman from the Gulf and will be managed by Four Seasons. It is uncertain though what this means for DIL’s 150 or so employees.

The statement issued by the company stressed the practical implications of the deal: “Desroches Island Lodge Limited (DIL) are excited to announce that we have concluded negotiations for the sale of the hotel and business situated on Desroches Island, subject to the Government of Seychelles consent and approvals. We will continue to operate, manage and market the hotel in the normal manner for the remainder of 2015, but envisage handing over possession and control to the new owners on 11 January 2016. DIL will therefore not take any further bookings beyond 10 January 2016 accordingly. The new owners will close the hotel for a period during 2016, in order to rebrand, refurbish and enhance the facilities.”

Interestingly, DIL also acquired the management contract of Alphonse Island Resort from Great Plains Seychelles in September 2012. “The aim is to bring the Desroches international managing skills to Alphonse Island Resort and offer an exclusive and diverse range of packages, a combination that both islands will benefit from,” the Islands Development Company (IDC), which administers the islands on behalf of government, said in a statement at the time. IDC was also involved in the construction of luxury villas on the island, some of which are owned by Seychellois while the rest belong to foreigners (villa owners qualify for residency in Seychelles). In fact, the change in ownership has sparked fears that villa management fees will increase significantly.

Aerial of the private villas on the beach

Prior to the sale, the 20 suitehotel and villas were managed by Seasons in Africa, “a South African based premier tourism marketing and management company”. The property belonged however to DIL which in turn is owned by Zabre International Limited (ZIL), a Mauritius based company which increased its effective shareholding in Desroches from 93.8% to 99% in 2014 (thereby possibly clearing the way for the sale). According to the annual report for the year ended February 28 2014 of Collins International Limited, an offshore company which owns ZIL - via Du Preez Limited, a holding company - DIL owned “the leasehold rights to Desroches Island in the Seychelles. It owns the Desroches Island Lodge Hotel as well as the development rights for 22 luxury villas on the island”.

Private Villa on Desroches

One of the directors of Collins International Limited is Kenneth Collins who along with his brother Murray Collins runs the Collins Group, a South African “commercial property development and investment company”. And although the reasons for the sale are still unknown, it has been suggested that a personality clash convinced the brothers to sell DIL when the right offer came along.

Source: Today in Seychelles

NOTE:

The principal activity of IDC, which was leased in 1995 fourteen islands for 99 years at an annual rent of SR1, is to manage those islands on behalf of the government of Seychelles. What is IDC doing sub leasing some of these islands and Desroches to a private Mauritian company? Did the Seychelles government sanction this? There is no transparency as the value of the lease will never be made public.