Rental Pool
Veranda Resorts has been appointed rental pool and facilities management company at Villas Valriche. Veranda Resorts owns and operates the two neighbouring 5* hotels (as well as several others) and their appointment means that Villas Valriche owners who wish to let out their villas can be confident in the knowledge that there is highly professional management company with extensive experience and strong international links looking after their interests.
Luxury IRS villas are set to play an increasingly important role in Mauritius' tourist industry, offering an additional and much required dimension to the market.
The complete set of agreements will be made available to the purchasers of the Villas at the same time as the finalised Deed of Sale for their perusal prior to signature. The Deed of Sale, the Lease Agreement and the Facilities Agreement shall simultaneously be executed by the purchasers of the Villas.
Please click a category below to access frequently asked questions about the Villas Valriche resort, and then select a question to view.
Villas Valriche will consist of 288 luxury villas constructed on an area ofabout 105 hectares of land situated in the Bel Ombre region of Mauritius(the Development). The Development is being undertaken in accordance with the Integrated Resort Scheme Regulations of Mauritius.
Pursuant to the execution of the Deed of Sale, each Villa Owner will become the freehold owner of his Villa. Subsequently, the Villas shall be subject to a rental pool program (the Rental Pool) in accordance with the Lease Agreement between each VillaOwner and Villas Valriche Resort Ltd (the Company).
The Company is registered under the laws of the Republic of Mauritius. The sole shareholders of the Company are Villas Valriche Resort Trust (the Trust) and Les Villas de Bel Ombre Ltee (the Developer). The Company shall issue 3 'AShares' and 2 'B Shares'. Each share shall, among other things, give its holder the right to appoint 1 director to the board of the Company. The constitution of theCompany provides that for the first 10 years following incorporation, the Developer shall hold the entirety of the A shares in the Company,whilst the Trust shall hold all the B shares. Thereafter, both entities shall swap their share holding position and the rights attached to them.
The Company has entered into an agreement with a management company (the Manager) to provide management and administration services as set out in the Administration and Asset Management Agreement. The Manager shall perform its obligations under the Administration and AssetManagement Agreement in the best interests of the Villa Owners.
Villa Owners shall be entitled to reserve specific dates of the year for personal use of their Villas by giving advance written notice. Such notice shall be given in accordance with the Lease Agreement, whereby the Villa Owner shall complete the Declaration of Usage Form and return it to the Company no later than a date to be determined by the Company. Villa Owners will have the option, with the required notice, to reserve 100% of the time in their Villas for their own personal use.
Ancillary to the purchase of a Villa, each Villa Owner shall be entitled to receive an array of services. Generally, the services shall fall into one of the following categories:
Homeowners Association Services
These include the services that Villa Owners will receive as part of the annual assessments they pay to the Homeowners Association and are expected to include the following:
- Common Area Maintenance and Landscaping;
- 24 Hour Security of the Common Areas;
- Waste Collection of the Common Areas.
Pursuant to a facilities agreement between each Villa Owner and the Company (the Facilities Agreement), each Villa Owner shall also be entitled to become the holder of a Facilities Access Card, against payment of a fee, which shall entitle such holder to the following services:
The Facilities
- Access to the Beach Club, the Sport Centre, Spa and Golf Course in accordance with the law and by-rules pertaining to the use of each facility.
Maintenance Facilities
- Personal Pool cleaning services;
- Individual Villa garden maintenance services;
- Individual Villa exterior wall maintenance; and
- Individual Villa waste collection.
Expenses
Villa Owners will be responsible for the payment of the costs associatedwith the provision of the (i) Homeowners Association Services; and (ii) Facilities Access Card, which includes the Facilities and the Maintenance Facilities (the Access Fees). The costs of the Homeowners Association Services and Access Fees shall be set out in a budget prepared by the Company and presented annually to the Board of Directors for approval.
The Villas will be subject to the Rental Pool, whereby each Owner shall declare the availability of his Villa to the Rental Pool during those periods when he is not in occupancy. In accordance with the Lease Agreement, each Owner shall then be entitled to a monthly Rent and an Allocated Usage Fee (calculated on the basis as set out below). The Company shall contract with a commercial operator (the Operator) to operate the Rental Pool and perform associated services.
The Lease Agreement
In order to establish the Rental Pool, each Owner will enter into the Lease Agreement with the Company for an initial period of one year which, at the option of the Company, is renewable for subsequent one year periods (the Lease).
Notwithstanding the voluntary nature of the Rental Pool:
- The Owners shall nevertheless be bound by conditions attached to their respective Villas so as to ensure that their appearance (including any applicable architectural guidelines) remains in accordance with standards that are consistent with that of a five star resort as understood in the hotel industry;
- The Lessee shall only allow the Villa to enter the Rental Pool if the Lessor makes the Villa available for a period of at least 4 calendar weeks in the Peak Season, provided that there shall be no less than 8 weeks in the Peak Season in a Current Year.
Villas Valriche Resort Trust
Villas Valriche Resort Trust (the Trust) shall be formed under which the Owners shall be the exclusive beneficiaries. The purpose of the Trust shall be to represent the collective interests of the Owners at the board of the Company. The Trust shall have a right to appoint directors in accordance with the constitution of the Company. The Trust, through the Board, shall act as the sole and exclusive representative of the beneficiaries in the discussions with the Company.
In doing so, the Trust shall ensure best practice in relation to the budgeting process as regards to the maintenance and repair of the Owners' Villas and the operation of the Rental Pool, as well as in the retention or changing of the Operator in accordance with the relevant agreements.
As a beneficiary of the Trust, each Owner will have a vote with respect to the appointment of the Trust's representatives on the board of the Company and shall be involved in other matters relating to the Trust in accordance with the Trust Deed.
Services to Rental Guests
As part of the daily rental rate paid by guests of the Villas, the Company, and /or its contractor or its assignee, shall provide all housekeeping services in conjunction with each rental and daily service comparable to a five star resort as understood in the hotel industry.
Lease Payments
Each Villa Owner shall be entitled to rent as determined by the Lease Agreement. Each Villa Owner shall also be entitled to an Allocated Usage fee, which will be his respective share in the rental revenues collected for the Rental Pool for each day that the Owner has not reserved his or her Villa for personal use. The Allocated Usage Fee on a given day shall be determined as follows:
Adjusted Total Usage Fee x (Unit Factor / Total of All Unit Factors in the Rental Pool)
The Unit Factor
The Unit Factor initially assigned to each Villa shall be determined by an internationally recognised firm of accountants (the Assessor). The Assessor shall be appointed by the board of the Company fromtime to time. TheUnit Factor shall be reviewed by the Assessor every year for the first five years and every five years thereafter. In determining the Unit Factor, the Assessor shall take into account the following:
- The location of the Villa in the Development and the views enjoyed from the Villa;
- The size of the Villa and plot;
- The quality of the finish and décor of the Villa; and
- The season.
The Adjusted Total Usage Fee
Adjusted Total Usage Fee means the Rental Pool revenue accrued by the Company less:
- Accumulated Rent payable to the Villa Owners;
- The Accumulated Occupancy Fees payable to the Villa Owners;
- Any applicable Fees or amounts payable to the Operator;
- The administration and asset management fee payable under the Administration and Asset Management Agreement; and
- Any other costs and overheads incurred by the Company.
