The discovery of a potentially major oil reserve off the Seychelles and the recent decision to commence production will see property prices soar on that tropical island paradise, particularly at the top end of the market. And for South Africans contemplating an offshore property investment, the Seychelles now offers both an unbeatable lifestyle and the prospect of excellent returns.

This is the view of Ivor Stratford, Deputy Chairman for the Pinnacle Point Group, whose company won a tender to develop the exclusive Île Aurore Nouvelle golf and casino resort in the Seychelles. He notes that with the quantities of oil discovered estimated to be 21-billion barrels, it will overtake the fishing and tourism industries as the major sources of revenue for the Seychelles.

Booming property sales

According to a recent statement by the President of the Seychelles, James Michel, a Dubai-based exploration company, EAX, have uncovered an area of the seabed that could hold billions of barrels of oil. "With the recent signing of the production agreement we are expecting the local economy, including property sales, to boom over the next few years," says Michel.

Stratford notes that, particularly in view of the importance of tourism to the Seychelles, both oil production and property development agreements were subject to very strict environmental controls.

"The Pinnacle Point Group secured the tender for the development of Île Aurore Nouvelle against four strong international contenders, one reason being our commitment to the preservation of the environment and the eco-system on the island.

"In reclaiming an extra 60 hectares of the sea in order to build an international 18-hole golf course, we are committed to funding the full rehabilitation of the coastline to a development that accords with the strictest environmental controls.

"The luxury villas themselves will have solar heating and rainwater will also be collected and used in the irrigation system for the golf course. Timber for the development will come from sustainable plantations and we are currently conducting research into the possibility of operating golf carts on photo-voltaic energy," he says.

The original island earmarked for development, named Île Aurore, just off the main island of Mahé proved too small for a golf resort of the magnitude envisaged by the Seychelles Government and the Pinnacle Point Group — hence the decision to reclaim areas from the sea to form a bigger island, Île Aurore Nouvelle. The resort will be targeted at high net worth individuals requiring exceptional properties for investment and lifestyle needs.

"Investors in Île Aurore Nouvelle can look forward to an extremely well thought-out resort that takes full advantage of the available space, offers the best accommodation, competitive pricing and an international golf course designed by one of the world’s leading golfers (to be announced later in the year). The project will incorporate a top brand hotel, international marina, casino and a host of additional facilities, says Stratford.

Buyers qualify for permanent residency in Seychelles

Buyers will qualify for Seychelles residence in much the same way as buyers in Mauritius have done. This concession to non residents has only been allowed now for the first time, thereby opening up wonderful opportunities to acquire property on the pristine island.

He notes that the GDP per capita for the Seychelles is by far the highest in Africa, the country offers the biggest marine park in the world, environmental protection is a priority and there is little unemployment or poverty.

"For savvy investors looking for a lifestyle to rival the best together with the opportunity to benefit from the very significant increase in property values and the new economic boom that will inevitably come about in the wake of the oil strike, this African paradise has it all. In fact, this could become a unique haven in the current troubled global economic climate," he concludes.

Having paid the Seychelles Government all the upfront monies for the island, the Pinnacle Point Group is currently completing the sensitive environmental impact assessment (EIA) studies which it anticipates will be complete by the first quarter of this year. As all planning has been done and only small changes necessitated by the EIA are envisaged, it is anticipated that construction and marketing will commence later this year. As Seychelles has only a limited and finite amount of land, the anticipated economic boom will undoubtedly put pressure on the demand for land.