Bank of Maldives (BML) has put Kalhudhiyafushi of Thaa Atoll, an island being developed as a tourist resort, up for sale for the third time. This is because the borrower failed to repay a loan from the bank, leading to the bank foreclosing on the property.
The island was first put up for sale in September 2019, with an initial price of USD 29.5 million.
In its sales note, BML detailed that it granted banking facilities to Huravee International Pvt. Ltd, of which a large share is held by Hussain Manik Dhonmanik, former MP of Thaa Guraidhoo constituency, via a facility agreement in 2016.
The bank had to ask the court for help because the borrower defaulted. In February 2019, the Civil Court gave BML the right to sell the mortgaged assets and collect the money owed to the bank.
The Maldives Marketing and Public Relations Corporation (MMPRC) initially leased the island for resort development.
The agreement to develop Kalhudhiyafushi as a tourist resort was signed between the Ministry of Tourism and Huravee International on August 24, 2015, with the former tourism minister Ahmed Adeeb signing on behalf of the ministry.
The island, situated near Gaadhiffushi island of Thaa Atoll, was originally planned to open in 2017. It will feature 97 private villas, 100 rooms, and three restaurants and is being developed in partnership with the international hotel chain Meliá Hotels International.
However, as of now, only about 78 percent of the resort’s construction has been completed.