The cyclical nature of the industry requires a property investment company to continuously adjust its strategy and remain nimble in the face of changing circumstances. In pursuit of a high-yielding portfolio, adaptability is key: we carefully reevaluate our projects and acquisitions, retract decisions that no longer hold our strategic interest, and shift our focus to more advantageous positions. During the year, our efforts were centred on diversifying our portfolio, optimising the yielding potential of our properties and achieving operational excellence:

• Recognising our exposure to the office segment following the sale of our warehouses in Riche Terre, we recently completed the negotiations for the acquisition of fully tenanted industrial properties. We have sufficient capital, through the bond drawdown, to deploy towards these yielding investments and we expect this to result result in a more balanced portfolio in terms of asset class.

• As expected, the acquisition of Absa House has solidified our presence both in a new geography, Ébène, and in the office segment. Following the refurbishment of two vacant floors in the building to attract high-calibre tenants, we were pleased to see that both floors found new occupants, which is extremely encouraging for us given the acute competition in the office segment in Ébène, and the high expectations of tenants when it comes to their office environment.

• We onboarded new tenants at EDITH, which is now home to local retail stores, well-known F&B brands and House of Digital Art, a contemporary cultural venue dedicated to the digital arts. Our efforts to upgrade the retail, dining and entertainment experience at EDITH have delivered an increase in footfall and trading density. In my view, our historic city centre is every bit as vibrant as other business hubs on the island, particularly with the added accessibility and convenience brought by the Metro Express. Port Louis has much to offer in terms of cultural events, artworks, leisure leisure spaces, and an eclectic mix of dining options. Effective communiation on these strengths, coupled with close collaboration among all players in the capital, is paramount for repositioning our capital as the place to be.

• All our properties were tenanted during the year, achieving an average 97% occupancy rate. Equally, 28 contracts were renewed and our rental collections stood at 98%. These metrics attest to the quality of our assets, the strong relationships we have built with our tenants, and our continuous investments in operational excellence and customer retention strategies.

• The opening of the Mourouk hotel was delayed by a few months due to logistical and labour challenges, which are to be expected when operating in a remote location such as Rodrigues. (More information in our case study on page 50). However, at the time of writing this message, the resort successfully opened its doors on 01 November 2023. The hotel’s ideal location in one of the world’s premier kitesurfing spots, its strong value proposition rooted in authenticity and sustainability, and our collaboration with a trusted and experienced hotel operator position the hotel for a promising performance.

• Our land conversion plans are on track, with 100% of the plots at Case Noyale already transferred at the time of writing, enabling us to recognise Rs 36.5m for the sale of land in FY 2023. A masterplan was finalised for the sustainable development of the remaining land, echoing our commitment to environmental stewardship.