The milestones reached in the year under review were made possible thanks to the work of a dedicated team led by Christine Marot. The focus in 2015 was on consolidating projects into profitable residential developments, while improving yields from our commercial assets with better rent rolls, and reducing losses from our hotels after the termination of our previous management contract in the first quarter of 2015.
The Group’s property development cluster includes a number of companies focussed solely on residential and commercial projects, mainly at Azuri. The Azuri project, created in 2012 aimed to become Mauritius’ premier lifestyle destination, entered its third phase of development in 2015, bringing to 400 the hotel count of residential units brought to market since inception.
Revenue for the Group’s property development segment dropped from MUR 1.1bn to MUR 855m in 2015, due mainly to the cynical nature of the prospects’ development and their respective contributions to revenue.
In 2015, we sold property from our inventory stock of IRS Phase 1 residences, as well as 40% of our Phase 2 local development, which is still a work in progress. The efforts required to complete and make good the delivery of Phase 1 hampered our ability to launch new projects. A new IRS project that was expected to start in July 2015 was delayed and only broke ground in end 2015. The revenue recognition for this project will only be accounted for as of January 2016.