SBM LTD – HEAD OFFICE – STATE LAND
(No. B/213) Mr E. Guimbeau (First Member for Curepipe & Midlands) asked
the Minister of Housing & Lands whether, in regard to the State Bank of Mauritius, he
will state if the Head Office thereof is located on State land and, if so, indicate -
(a) the extent of land
(b) the terms and conditions of the lease
(c) the annual rental and
(d) if the rental value reflects the actual market value
Dr. Kasenally: Mr Speaker, Sir, in regard to part (a) of the question, the Head
Office of the State Bank of Mauritius is located over a portion of State land of an extent
of 2223m2 (that is, 53P).
In regard to part (b) of the question, the terms and conditions of the lease are,
inter alia, as follows -
(i) Type – industrial site lease
(ii) Purpose – the construction of a multi-storey headquarters building for the
State Commercial Bank Limited
(iii) Duration – 29 and a fraction years to expire on 30 June 2019
(iv) Renewal Clause – may be renewed at the expiry of the lease for two
consecutive periods of 15 years, subject to the rent being revised on each
renewal to reflect the market value.
In regard to part (c) of the question, at the time of lease, that is, in 1989, the
rental agreed upon was at a nominal value of Rs1,000 per annum.
As regards part (d) of the question, the Finance Act provides for the terms and
conditions of all industrial and commercial leases to be reviewed, including the annual
rental to reflect the market value. A specific provision has been made in the Act to
include the State land industrial leases in the City Centre. The State Bank of Mauritius
Ltd forms part of this category of leases.
Mr Guimbeau: Mr Speaker, Sir, can we have an idea when the rent is going to be
revised?
Dr. Kasenally: Following the Finance Act approved in June 2009, there has been
consultation with the State Law Office, and there were a lot of issues which had to be
sorted out. Finally, we sorted out the problem, and I am expecting that the matter will be
resolved probably in three or four months’ time. Perhaps the hon. Member would like to
know that the rental for the State land – because it will be prime land in the City Centre -
might be between Rs8 to Rs10 m. per annum.
Mr Guimbeau: We all know, Mr Speaker, Sir, that many big businesses are
leasing land in the capital for pitance. So, will this include all other industrial sites?
Dr. Kasenally: Yes, Mr Speaker, Sir. There are about 28, and I think that
Government stands to gain a fair amount of revenue accruing to that. Because there are
two on prime land in the City Centre and one is beyond. The city centre is a bit more
expensive. For example, I understand that Harel Mallac is paying about Rs500. This
also would be substantially increased.
Sitting 14 April 2009
(No. B/213)
Mr E. Guimbeau (First Member for Curepipe & Midlands) asked the Minister of Housing & Lands whether, in regard to the State Bank of Mauritius, he will state if the Head Office thereof is located on State land and, if so, indicate -
(a) the extent of land
(b) the terms and conditions of the lease
(c) the annual rental and
(d) if the rental value reflects the actual market value
Dr. Kasenally: Mr Speaker, Sir, in regard to part (a) of the question, the Head Office of the State Bank of Mauritius is located over a portion of State land of an extent of 2223m2 (that is, 53P).
In regard to part (b) of the question, the terms and conditions of the lease are, inter alia, as follows -
(i) Type – industrial site lease
(ii) Purpose – the construction of a multi-storey headquarters building for the State Commercial Bank Limited
(iii) Duration – 29 and a fraction years to expire on 30 June 2019
(iv) Renewal Clause – may be renewed at the expiry of the lease for two consecutive periods of 15 years, subject to the rent being revised on each renewal to reflect the market value.
In regard to part (c) of the question, at the time of lease, that is, in 1989, the rental agreed upon was at a nominal value of Rs1,000 per annum.
As regards part (d) of the question, the Finance Act provides for the terms and conditions of all industrial and commercial leases to be reviewed, including the annual rental to reflect the market value. A specific provision has been made in the Act to include the State land industrial leases in the City Centre. The State Bank of Mauritius
Ltd forms part of this category of leases.
Mr Guimbeau: Mr Speaker, Sir, can we have an idea when the rent is going to be revised?
Dr. Kasenally: Following the Finance Act approved in June 2009, there has been consultation with the State Law Office, and there were a lot of issues which had to be sorted out. Finally, we sorted out the problem, and I am expecting that the matter will be resolved probably in three or four months’ time. Perhaps the hon. Member would like to know that the rental for the State land – because it will be prime land in the City Centre - might be between Rs8 to Rs10 m. per annum.
Mr Guimbeau: We all know, Mr Speaker, Sir, that many big businesses are leasing land in the capital for pitance. So, will this include all other industrial sites?
Dr. Kasenally: Yes, Mr Speaker, Sir. There are about 28, and I think that Government stands to gain a fair amount of revenue accruing to that. Because there are two on prime land in the City Centre and one is beyond. The city centre is a bit more expensive. For example, I understand that Harel Mallac is paying about Rs500. This
also would be substantially increased.