New measures introduced to deter transfers of leased land |08 February 2022
Minister Vidot flanked by Mr Collie (left) and PS Nalletamby during the briefing with the press (Photo: Louis Toussaint)
Lease holders on the industrial estate at Providence who want to sell their lease will soon have to pay a transaction fee of 12.5% on the value of the transfer price, among other measures aimed at deterring people who have bought land at a subsidised prize to sell it at exorbitant prices.
It was the Minister for Investment, Entrepreneurship and Industry, Devika Vidot, who made the statement during a briefing last week with the press on the matter.
Also present at the meeting held at the Seychelles Bureau of Standards (SBS) at Providence, were the principal secretary for Industry, Michael Nalletamby and the chief executive of the Industrial Estate Agency (IEA), Roy Collie.
Minister Vidot stated that other deterrent measures will include charging a new premium at a new rate on the incoming lease holder, in addition to the rent payable on the land to be charged at a revised rate.
The new lease holder will also not have the opportunity to be granted a new lease duration (60 years) other than the remaining period left on the original lease.
“The aim of introducing the transaction fee is to firstly deter these speculated practices and also for government to try and recover some of its loss through funds that have been forgone as a result of having charged land at a subsidised rate to the current lease holders,” said Minister Vidot, who noted that subsidised land for lease of transfer had been advertised at between R25 million and R30 million and US $12 million.
Minister Vidot said that although government cannot interfere or set a price on any land being transferred, the regulations will prevent land speculations as the incoming lease owner will probably not buy a lease at an exorbitance price knowing that they will have to continue on the current and not on a new lease of 60 years.
She explained that the lease speculation is as a result of a scarcity of land for businesses and the measures are to ensure that those with the lease capital can also get a piece of land.
The minister added that the funds collected through the transaction fee will be used by IEA for the maintenance of the industrial zone needed on a daily basis as well as to improve the state of the roads and infrastructure.
Minister Vidot said that in the new regulations being currently drafted, a current lease holder will not be able to sell the lease to another person who already owns business properties on the estate as well as other parcels of land elsewhere.
She added that government wants to ensure such land is made available at a reasonable price to people who are on the waiting list.
The set of measures were approved by the cabinet of ministers on January 26, 2022. This follows an increase on demand from IEA for lease transfer. Applications for the transfer of leases are being put on hold until the regulations are finalised and published by end of the first quarter.
Minister Vidot said that her ministry will provide more details about the new regulations once the document has been drafted by the Attorney General.
She stated that the distribution of land done in the past at the industrial estate had allowed only a few people with capital to own many plots of land.
Patrick Joubert