The Bank of Maldives (BML) has announced the sale of Kuda Fares, one of the two islands operating Rahaa Resort, for a minimum price of USD 45.6 million.
The announcement follows a Civil Court order authorising the bank to sell three islands mortgaged by Heavy Load Maldives over an outstanding loan.
According to BML’s announcement today, the minimum asking price for Kuda Fares has been set at USD 45.6 million. Interested parties have until 12:00 noon on December 2 to submit their proposals.
Heavy Load Maldives is owned by former Deputy Speaker of Parliament Reeko Moosa Manik and his three children, who also hold shares in the company.
The Civil Court granted BML permission on October 28 to sell three islands held as collateral after Heavy Load Maldives failed to repay an USD 11 million (MVR 170 million) loan obtained from the bank. The court’s latest order also records that the company had agreed to the sale of the islands at prices determined by BML.
This is not the first time the Civil Court has authorised the sale of the islands. A previous ruling allowing the sale was overturned by the High Court.
Under the latest court order, BML has been given three months to sell the properties, with the following minimum prices:
- First month: USD 46,633,000.
- Second month: USD 40,820,000, if the properties remain unsold during the first month.
- Third month: USD 38,779,000, if they remain unsold during the second month.
The bank has also been ordered to submit details of any completed sale and deposit the proceeds with the court within 10 days of the transaction. If the properties remain unsold after the three-month period, BML must notify the court within 10 days of the deadline.
The three islands covered by the court’s authorisation are Fares, Kuda Fares and Boduhuraa, all located in Laamu Atoll. Fares and Kuda Fares are the two islands on which Rahaa Resort operates, while Boduhuraa has been leased for agricultural purposes.
The head lease for all three islands expires in 2064.
