Herathera Resort to be sold to a Singaporean company for USD 33.3 million

Maldives Tourism Development Corporation Public Limited Company (MTDC) has announced that it will be selling the company’s first resort Herathera Island Resort to a Singaporean company for USD 33.3 million.

MTDC Executive Director Ahmed Niyaz stated that four companies had shown interest by the time the announcement of sale of the resort had expired on December 31, local media reported.

Niyaz stated the contract had been awarded to the highest bidder Singaporean developer Canaries Pvt Ltd.

“We decided to sell the island to whoever offered the highest price. Thus, as Canaries submitted the highest price, we are now in the process of handing over the award letter to them. We will do so within the next two days,” he said.

He further revealed that the second highest price had also been submitted by a Singaporean company, whle the third highest price was offered by Maldivian businessman ‘Champa’ Hussain Afeef’s Treetop Maldives company.

The fourth party to have expressed interest was a Malaysian company which, according to Niyaz, had been disqualified for not fulfilling the requirement of submitting a bank guarantee of USD 1 million.

Niyaz stated that Canaries Pvt Ltd must submit the full payment for the island within thirty days of the award letter being issued. If it fails to do so, the company’s bank guarantee will be claimed by the Maldivian government and the island will be sold to the next highest bidder.

The previous board of directors of MTDC had decided to sell the four star resort to Champa Hussain Afeef for USD 30 million. However, the decision had been revoked after the board was recompiled.

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