jcm conseil immobilier - Pavilions of Splendour International Inc.

FILE PRESENTATION
TAHITI – FRENCH POLYNESIA
Exclusively by
SELLING PROPOSAL
On Tahiti by the sea side, a 22 805sqm property including a
luxurious garden.
The park is surrounding a 40 rooms hotel, 120 parking lots and
a restaurant opened on the beach facing the Taaone’s bay
The hotel has been in activity for around 40 years now.
Its clients includes over seas tourists and locals all year long.
Is included in the selling price :
the 22 805sqm land, the hotel’s activity and its buildings
Price : $ 10 000 000 US
LOCATION
French Polynesia islands are located in the middle of the South
Pacific Ocean (17° south latitude – 147° East longitude).
They are represented by 118 islands or islets all over 5
archipelagoes (Marquesas, Tuamotus, Gambiers, The Australs
islands and the Society).
French Polynesia in the South Pacific
Its oceanic surface is 4 millions square kilometers.
Its emerged surface represent around 4 000 square kilometers.
The island of Tahiti is 1050 square kilometers.
The population of French Polynesia in 2010 is 265 000 people.
French Polynesia : five archipelagoes
POLITICS AND ECONOMY
POLITICS
French Polynesia is an overseas French territory, and enjoys
some autonomy from the mainland French Government. This
“Overseas Collectivity” (the name given to its specific
administrative status) is locally administered through an
elected local Parliament and Government, except in the field
of justice, education, security and the army, which are
controlled by France.
The territory has suffered from political instability since the
mid-2000s due to the opposition between pro and antiindependence factions. This local governmental instability has
resulted in a lack of strategic decisions for the Territory, such
as the issue of the air transportation.
At the beginning of 2009, a new coalition was elected with the
support of both opponent parties, leading to what was
considered as a more stable political situation, but at the end of
2009, its leader, Oscar Temaru, was replaced by Gaston Tong
Sang. The local political climate is still unstable in French
Polynesia, which makes actions and decisions more difficult
for anything that falls under local control, which includes the
tourism industry, infrastructure development and town
planning.
Economy
French Polynesia has a moderately developed economy,
compared to the Western countries, with an average GDP per
capita of about €17,000. However the Territory ranks as the
fifth-largest economy in Oceania after Australia, New Zealand,
Hawaii, and New Caledonia, and higher than in all the
independent insular states of Oceania. This implies a fairly
large solvent local demand, with a minority of well-off people
capable of investing in the local real estate.
The dependence of the economy on imported goods and the
scattered profile of the Territory (multiple islands) have
resulted in one of the world’s highest cost of living. The labour
costs are high and comparable to mainland France with a
minimum monthly salary of around €1,200 (net to the worker).
The Pacific Franc (XPF), French Polynesia‘s official currency,
is based on a fixed rate of 1,000 XPF to 8.38 Euros (or 1 Euro
for 119.332 XPF). This link to the Euro has resulted in the
destination being more expensive for the majority of the
market feeders (United-States, Japan, New Zealand, Australia
and the Pacific States), and therefore the least pricecompetitive destination of all the South Pacific Islands.
The local economy is highly dependent on the financial
assistance of mainland France which contributes about 80% of
Tahiti’s total GDP. Outside these transfers from France, the
economy is driven by the tourism industry. In an effort to
reduce subsidies from France, development has been
stimulated over the past 15 years by tax incentives.
The City of Pirae
The property is located in Pirae, a Commune (town) on the
Island of Tahiti which lies immediately to the east of Papeete,
the region’s capital. Pirae is the 4th largest town in French
Polynesia by population with 14,850 inhabitants. Recently
dominated by a nearby French naval base, it is mainly a
middle- to lower-class residential area. Until the 1970s there
was little industry or employment in the commune and it was
a suburb of Papeete. The 1970s saw the massive deployment
of French troops to Tahiti in support of the Pacific nuclear
tests that France carried out for the next 30 years.
Pirae benefited from the presence of the main military
Headquarters, the CEP on its territory. This led to the
development of schools, shops and further housing.
The
military has progressively down-sized since the end of nuclear
testing in 1996, and there are plans to shut several bases on the
Island, including that of Taaone which is in Pirae.
The new, dominant feature is the new Territorial Hospital,
which is scheduled for completion at the end of 2010, after a 9
year delay. The new hospital will be a 90,000m² state-of-theart building employing over 1,000 people. This will help to
offset the eventual loss of the base.
Traditionally the other (west) side of Papeete has been viewed
as the better part of the island with white sand beaches, views
to the island of Moorea and up-market, newer housing. Over
the last 30 years, the western suburbs have enjoyed the bulk of
the infrastructure and tourist development, including the
upscale and luxury hotels. The tables are now turning as the
western coast becomes saturated with little residential
development land available and there are traffic jams at peak
hours on all the roads into Papeete.
Pirae’s eastern coast, which has black sand beaches, has more
land available to develop, particularly as one heads further
away from Papeete, beyond the town of Arue. A number of
new roads have been completed and more are planned, in
anticipation of the added traffic that the new hospital will
create. Land prices and some residential prices, particularly
close to the ocean front, are now rivalling those of the suburbs
immediately west of Papeete, such as Punaauia.
THE HOTEL LOCATION
HOTEL
Commune de
Papeete
Commune de
Pirae
The Royal Tahitien hôtel
Aerial view of the hotel complex
Taaone bay’s
Entrance of the parc
Tematani TEMARII drive
Prince HINOI avenue
The property is located on the north side of Tahiti’s main
highway, Avenue du Prince Hinoi. It has a 122-metre sea
frontage to the Bay of Taaone, which is a large fishing and
leisure reserve sheltered by a coral reef. The expansive
grounds provide a level site covering to 22,341 m² (5.52 acres),
which is sheltered behind a 2.5 metre concrete seawall.
The direct access to the property is made from the Tematani
TEMARII drive
Entrance of the hotel complex
Parking entrance, view of the front desk
Many parking spaces
One of the rooms building
A relaxing space inside the park
A little river inside the park
View to the room building from the park
Black sand beach in the Taaone’s bay
Nearbys
Down Town by the Prince Hinoi avenue : 10 mn
Hospital by the Prince Hinoi avenue : 5 mn by foot
Commercial center « Carrefour » : 5 mn
Bus station : 3 mn by foot
Planning Policy
The Government of Tahiti is piloting a plan to modernise the
permitted planning zoning for all communes. At the forefront
they have grouped three adjoining communes together for the
first wave of changes: Papeete, Pirae and Arué. The new plans
are called the PGA (Plan General d’Amenagement). However
the timetable has not been adhered to.
• The plan for the capital city of Papeete was approved and
adopted last year
• The plan for Pirae is in the last phase of adoption
• The plan for Arué was timed out and the process has
started over
The current zoning under the planning regulations for the
commune of Pirae is “B Zone” under the regulations dating
from 19 October 1965, which was residential use and generally
allowed most reasonable development.
The new zoning for the site under the draft plans of the new
PGA of Pirae is Zone UT, destined for Tourism uses, defined
as follows:
• Permitted use: Hotel, Pension, Residences, residential for
the owner or employees.
• All plots must be larger than 400 m² to permit
development.
• Development must be set back a minimum of 6 metres
from public highways.
• Development must be at a minimum distance of 4 metres
from a boundary separation, and further according to
height of construction based on the formula of height to
last floor (not attic) less 4 metres.
• There are no specific height limitations, density or site
coverage limitations; however, the distance from the
boundary regulations greatly limits possibilities. You may
build to the boundary if you have the specific permission
of your neighbour.
In addition there are other limitations, set by the PPR (Plan de
preventions des Risques, Plan showing Risk Assessment). The
site is in a Tsunami Zone and no construction can be built
within 20 metres of the shoreline. Further detail is provided in
the Flood Zone section below.
Flood Zone
The zone is covered by the PPR (Flood zoning rules of the
town of Pirae) as a building fronting onto the South Pacific
Ocean. This prevents the development of any new buildings
within 20 metres of the site line fronting the sea.
Except for the Restaurant and its kitchen, and the Manager’s
bungalow (Room 41), the remaining buildings lie outside the
zone and are compliant with the 20 metre requirement.
However the the restaurant and kitchen of our hotel (built in
1937) lies in the Zone Rouge (Red Zone), where all
developments are forbidden. If the restaurant were to be
completely destroyed, it would technically be illegal to rebuild
it in the same location.
This means that it is possible to maintain the Restaurant and
kitchens as well as the Manager’s bungalow (Room # 41)
which fall within the 20 metre limit, but that no new buildings
may be constructed. Illegal additions would be demolished.
Renovation however, is permitted, as long as the works
comply with the “Declaration de Travaux” planning
regulations.
This rule is a constraint on redevelopment of the hotel site as
well as any other seafront location. This means that a
restaurant competitor could not build a restaurant in a similar
location, which only enhances the uniqueness of the current
restaurant.
Highways/Access
The approach road is an designated highway and is the
primary highway on the island of Tahiti.
The hotel’s lawyers have made enquiries to the Ministry of
Equipment as to whether vehicular access could be granted
directly onto the Avenue Charles de Gaulle. Technically, any
site having a frontage of more than 30 metres is eligible for
access to an urban highway. However, town planning has a
high level of discretion in blocking such access and this would
become a negotiating point.
Representatives of the current owner discussed direct highway
access with the mayor of Pirae who seemed to have no
particular objection to such an application, but mentioned that
the process could take some time as has been experienced in
the approvals for a neighbouring building on the same road.
It would seem that careful preparation, with a request in
support of a town planning application that abides with the
planning zoning, would eventually obtain permission to open
an access to the avenue.
The hotel description
The site accommodates 8 buildings, which were purpose-built
as a hotel complex in 1967. The largest of these is a 2-story
hotel room building with two wings containing all 40 rooms.
The remainder of the buildings are one story only and include:
the combined reception and back office; a restaurant; a bar,
swimming pool support facilities; laundry and housekeeping
buildings and a maintenance complex.
In all there is 2,800 m² of “Surface Utile” (useable space) of
accommodation.
The property was built specifically by the current owner and is
still in operation as a midscale hotel and restaurant. With 43
years in service, it is, however, obsolete. Successive waves of
newer properties, coupled with a downturn in Tourism to Tahiti
have made for a difficult operating environment.
Terrace of the garden level room
Inside a room
Hotels complexes in Tahiti and its islands
Land references of the property
Section B –
parcelle
Parcelle
Parcelle
Parcelle
Parcelle
Total surface
13
371
372
369
368
2 ha 11 a 33 ca
11 a 33 ca
59 ca
18 ca
4 a 62 ca
2 ha 28 a 05 ca / 22805 m²
Contacts
Jacques C. MENAHEM
Owner
Cell. : + 689 77 70 40
E-mail : [email protected]
EURL Capital 1000000CFP
63-65 rue Gauguin Pont de l’Est – BP 50014 – 98716 Pirae
Tél (689) 419 777 Fax (689) 439 030
Carte professionnelle 94-2 – N° Tahiti 311 670 RC 5265B
Garantie Financière 10000000Fcp Socredo 50292300154
E-mail : [email protected] - Web : http://www.jcmconseil.net