Two plots making up Reeko’s Rahaa Resort put up for sale at USD 45.6M

Bank of Maldives (BML) has announced the sale of L. Fares and L. Kudafares on Sunday, following authorization from the Civil Court to sell three islands owned by Heavy Load Maldives due to a loan default.

Fares and Kudafares are the two island which makes up Rahaa Resort.

According to the announcement issued by BML, the starting price for Fares and Kudafares has been set at USD 45.6 million. Interested parties have been invited to submit their proposals by 12:00pm on December 2^nd.

On November 28th, the Civil Court authorized the sale of three mortgaged islands after Heavy Load Maldives, a company in which former Deputy Speaker of Parliament Reeko Moosa Manik and his three children hold shares, failed to repay a loan of USD 11 million (approximately MVR 170 million). At the time of the court order, Heavy Load Maldives had consented to the sale and the valuation determined by BML.

Although the Civil Court had previously authorized the sale of these islands, the High Court subsequently overturned that ruling.

The latest Civil Court order grants BML a three-month period to sell the properties under the following pricing structure:

During the first month: A starting price of USD 46,633,000.

During the second month: If the islands remain unsold during the first month, the price will be reduced to USD 40,820,000.

During the third month: If the properties remain unsold, the minimum authorised sale price will be USD 38,779,000.

The court has ordered the bank to submit details of the transaction and deposit the proceeds within 10 days of any successful sale. If the mortgaged properties remain unsold within the stipulated period, the bank is required to notify the court within 10 days of the expiry of the term.

In addition to Fares and Kudafares, the court has authorized the sale of L. Boduhuraa, which is designated for agricultural purposes.

The head lease for the islands remains valid until 2064.