An aerial view of the Providence Industrial Estate showing the plots of land available for the new 99-year lease

The Ministry of Industries and International Businesses (MIIB) is offering tenants occupying lands on the Providence Industrial Estate (PIE) the option of converting their existing lease into a new 99-year lease.

The ministry has already began to issue letters of notice to some 182 tenants and they have until the end of this month to submit their decision.

The project is targeting  213 plots covering a total area of 344,000 square metres and the government is expected to collect some R60 million from the 99-year leases.

This offer forms part of an exercise being carried out to privatise industrial lands, a requirement of the Macro-Economic Reform Programme (Merp).

When launching the programme, the government announced that it would be selling some of its assets, which could be undertaken by the private sector, to encourage their greater participation in the economy.

Giving details of the project, MIIB principal secretary Joseph Nourrice said they were offering a new lease-hold agreement for the industrial plots instead of selling the lands outright, to ensure that the area remained an industrial zone in accordance with the Industrial Land Allocation Policy.

The tenants will have to surrender their existing 30-year lease for a premium one-off payment under the new 99-year lease. It is to be noted that following the one-off payment of the new lease, tenants would not have to pay the monthly rental, as is the case in the present system.

The costs of the plots of land will vary depending on their location, accessibility, potential for development and the size.

For instance, plots with sea-frontage will be more expensive than those in-land.

The minimum price being offered is R150,000 for a 500 square metre plot.

Interested tenants can acquire a loan from the commercial banks to pay the lease and according to Mr Nourrice the longer the lease the more easy it would be for them to obtain a loan. 

Mr Nourrice explained that for tenants who would not opt for the 99-year lease, a  revision would be carried out in accordance with the provision of their existing agreement.

As a result, there will be subsequent increases in their rents.

However, the ministry, PS Nourrice said, has put aside a total of 7,000 square metres to cater for small enterprises which could not afford the 99-year lease.

The PIE is currently being managed by the Seychelles Industrial Development Corporation (SIDEC), but under the new project, Mr Nourrice said it was highly likely that the management of the land would be transferred to the Property Management Company to be set up.

An office has been set up at SIDEC, Camion Hall Building, where MIIB officials will be on hand to assist tenants with their queries.

They can also contact number 323151 and fax number 225086.     

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