FAQ FOR AVALON GOLF ESTATE
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- Bernadette Wilkinson
- 6 years ago
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1 FAQ FOR AVALON GOLF ESTATE What does Avalon propose? The last part of a residential development exclusively for Mauritians 80 lots ranging from 1630 to 4194 m2 ( 430 to 1091 toises ) Price range is from Rs 14,500 to 23,500 per toise Included in the price: The Suite Par of 62 m2 composed of a master bedroom, ensuite bathroom, walled veranda and kitchenette (value of Rs 1,500,000.00) Life membership to the Golf Club for 2 adults (value of Rs 1,000,000.00) Next phase being the RES phase with 3 independent projects i.e Carleon Village 36 Villas Camlan Village 41 villas Badon Village 34 Villas Who are the promoters? The promoter of Avalon Golf Estate is Arthur & Morgane Ltd. Main shareholders of the company are of high repute and well known professionals, among whom there is : Michel Chan Sui Ko, CEO of Nexteracom Group, property developer who has successfully built some 1 millionsqft of office buildings in Port Louis and Ebene area ; Gerald Lincoln, Country Managing Partner of Ernst & Young, a leading global firm of Chartered Accountants ; Alain Hao, Managing Director of PAD & Co. Ltd, one of the leading construction enterprises in Mauritius. How will the golf course and country club be legally structured? The golf course and country club will be separated from the golf estate. Land earmarked for the golf course and country club will remain in Arthur & Morgane Ltd, the Promoter Company. Arthur & Morgane Ltd will own the Golf Club and be entirely responsible for its management,including the financing of operating losses, if any. The owners of residential plots will constitute the Association Syndicale des copropriétaires de Avalon Golf Estate. The Golf property will not form part of the Association Syndicale. Once the final permit is obtained and the plots transferred to owners, the Association Syndicale will be responsible for ensuring the proper running of the residential estate, independently of Arthur & Morgane Ltd. Plot owners will therefore be separated from the ownership of the golf course and country club. There will be an agreement between the golf club and the plot owners of the estate: with the purchase of a plot, free membership is offered to the owner. The only fee payable will be of Rs 3,000, which can increase proportionally to the consumer s pricing index.
2 Who will own the assets and liabilities of the golf course and country club? Construction costs of the golf course and country club will be borne by Arthur & Morgane Ltd, financed by shareholders loan and membership fees. Other equipment such as carts, golf course maintenance, irrigation etc have been funded by the promoters via shareholders loan/equity. Revenues and expenses of the golf course and country club? All green fees, membership fees and other revenues derived from the Country Club s activities will be for Arthur & Morgane Ltd. Similarly, all operating expenses related to the Country Club will be borne by the Arthur & Morgane Ltd. How will the Avalon Golf and Country Club be managed? The Avalon Golf & Country Club will be managed by Arthur & Morgane Ltd. There will be a Golf Committee responsible in respect of the golf activities, for the set up and approval of: New membership classes, number of membership issued, privileges and restrictions; Membership fees and annual subscription fees Bye Laws, rules and regulations The Golf Committee will be elected every three years and will comprise of the following members: Three (3) members to be appointed by Arthur & Morgane Ltd One (1) member to be appointed by the Association Syndicale des Propriétaires de Avalon Golf Estate. One (1) member to be appointed by the Association of Avalon Golf and Country Club members. The chairman of this committee will rest with Arthur & Morgane Ltd. How will the membership of the country club work? Members of the Country Club will be separate from Arthur & Morgane Ltd, i.e. members will NOT OWN the golf course and the country club. Members will form part of an association, completely separate from Arthur & Morgane Ltd. Members will pay preferential rates for facilities of the Country Club (e.g. green fee, cart rentals, practice balls, tennis, etc ) A similar arrangement is in place in Tamarina, Belle Mare and other golf courses. Can I become a member of the country club without buying a plot of land at Avalon? Yes, prospective members of the Country Club will have to pay a one-off membership fee, which currently stands at Rs 500,000 to become member. An annual membership fee of Rs 12,000 (Rs 1,000 per month) will be levied to all individual members. Do I get membership of the country club with the purchase of a plot of land in Avalon? Yes, a membership for the whole family is provided in the price paid for a plot of land. Each land owner can nominate 2 persons (usually husband & wife). Family members over 18 years of age will require separate membership. Annual membership will be levied for family memberships via the syndic fee (see below). The membership may be nominated to another person, i.e. for example a person who has rented the villa on a long term basis, provided the person is residing on the estate.
3 Who will be responsible to maintain the Residential estate? The plot owners will constitute an Association Syndicale that will be responsible for the proper up keeping and running of the residential estate (maintenance, security, cleaning, irrigation and up keeping). What will be the amount of syndic fees payable? Plot owners will contribute to a syndic fee which will be based on actual running expenses of the syndic. This is estimated at Rs 5,000 per month per owner. This syndic fee will be subject to approval via Annual General Meeting of the Association Syndicale In addition, each plot owner will contribute an amount not exceeding Rs 3,000 per month for the maintenance of the golf and country club subject to normal increases due to inflation. This amount will include the annual family membership fee of the villa owners and no further annual or monthly membership fees will be levied upon them. How is this syndic fee compared to other residential estates? The syndic fee of Rs 8,000 per month (including the Rs 3,000 contribution towards the maintenance of the golf and country club) is very competitive. For comparison purposes, the syndic fees in IRS estates around Mauritius range from Rs 12,000 to Rs 20,000 per month. The syndic fee currently charged in a significantly smaller residential compound in Moka is Rs 4,500 per month. The membership fee for a couple in a relatively small sports complex is around Rs 2,500 per month. What does the syndic fee include? The syndic fee is based on our estimation for the level of services to be provided. These include: Cleaning, repairs and maintenance of all common areas, river banks including nature trails ; Cleaning, repairs and maintenance of common infrastructure such as roads, drains, sewerage network, parking facilities, pavements, street lightings and bollards ; Maintenance of all common equipment including but not limited to CEB transformers, generators, water, pumps, sewerage treatment plant and CCTV network ; Scavenging services ; Security of the estate ; Administrative expenses for the Association Syndicale and the Conseil Syndical ; Insurance, e.g for common assets and public liability ; Cost of all utilities for common areas and equipment ; Contribution for the maintenance of Avalon Golf & Country Club (limited to Rs 3,000 per month). How will the promoters address any shortfall in the funding of the golf and country club operations? As explained, the golf and country club operations have been ring-fenced in Arthur & Morgane Ltd. Individual plot owners will not be called upon to finance any shortfall in the finance of Arthur & Morgane Ltd. The responsibility to make good such shortfall remains with the promoters at all times. Furthermore, any funding raised from the sale of memberships to non residential plot owners will remain in Arthur & Morgane Ltd as a sinking fund to cater for any such eventualities.
4 Some golf courses are currently incurring heavy losses; do you expect the Avalon Golf and Country Club to be in a similar situation? If not, why? The promoters have carried out rigorous, prudent and comprehensive feasibility studies around the operations of the golf course in collaboration with South-African golf consultants. Conclusions show that the golf operations will be in a break even position after Year 3. The fundamental differences in our operating model and circumstances as compared to some other existing golf courses in Mauritius are as follows : Arthur & Morgane Ltd will own the land earmarked for the golf course and country club. Hence, no rental will be payable as compared to some other golf courses ; Arthur & Morgane Ltd will be debt-free, hence will incur no finance charges. Such finance costs are major cost components in some other golf operations ; The golf sector in Mauritius is flourishing and Avalon is entering the market at the ideal moment. Some of the existing golf courses have reached full capacity in terms of golf rounds during a year, indicating that a shortage of capacity will soon be experienced ; Avalon Golf Estate is ideally located for local golfers. It is within half hour drive from the main residential centres in the Plaine Wilhems area. How will the promoters manage the risk that the golf course becomes financially unsustainable due to continuing losses? Our business plan is based on the construction and maintenance of a world class championship golf course as advised by our experienced golf consultants in South Africa. The proposed fees and rates applicable to members and homeowners were determined accordingly. In the very unlikely event that the running of such a world class golf course proves to be financially unsustainable, we have already identified options with the help of golf management how to adjust the running costs while maintaining an operational and playable golf course. These measures will have minimal impact on the look and feel of the residential estate but will allow the golf company to remain afloat. Will the infrastructure of Avalon be built in phases? The overall infrastructure of the Avalon Golf Estate will be built in one single phase. How many villas can I build on 1 plot? Construction area will be limited to 20% of the total plot size. At most 2 villas can be built on 1 plot, depending on the villa and plot sizes. Are there going to be restrictions in terms of villa architecture & colors? Plot owners have a choice of 2, 3 and 4 bedroom villas designed by approved architect firms, namely : Lampotang & Siew Architects Ltd Morphos Architects Ltd The detailed plans of the villas available, with approved colour code will have to be purchased from the architects. Strict cahier de charges will be applied to ensure harmony with the natural environment of Avalon. What is the construction period after acquiring the land? The promoters are working on an early bird package to encourage land owners to start construction early, i.e. during the construction phase of Avalon. Once construction has started, the residence must be completed within 24 months.
5 Will there be a rental pool if I wish to rent my villa out? Yes. Such facilities will be available as there will also be RES villas on the estate. What facilities will there be at the Country Club? The facilities available will be: 18 holes championship golf course, 22m heated swimming pool, tennis courts, football, basketball, volleyball, children s corner, game room. What will be the standard of the golf course? The golf designer, Peter Matkovich, has designed the golf course in Bel Ombre. The Avalon golf course will be of similar standard. Can I provide the plot acquired as fixed charge to banks? As the deed of sales will only be signed when all payments have been made by the buyer, no security may be given. Nevertheless, there will be a tripartite agreement between the buyer, bank and promoter, Arthur & Morgane Ltd and the buyer will provide a floating charge to the bank or any other personal security. What is the level of rainfall compared to other regions? The rainfall statistics available for Avalon indicate similar rain levels as Vacoas and Floreal.
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