The island of Kalhudhiyafushi in Thaa Atoll, initially slated for development as a high-end tourist resort, is once again up for sale. This marks the third attempt to sell the island following significant delays and financial complications faced by its developers.
The island, located near Gaadhiffushi, is on the market with a starting bid of USD 34,258,000. Interested parties are required to submit their bids by 12:00pm on 30th June, with successful bidders needing to make a deposit payment of USD 100,000.
The current bid price is notably higher than previous attempts, reflecting a USD 4 million increase from the USD 30 million asking price in September 2021, and up from USD 29.5 million in September 2019.
Kalhudhiyafushi was leased for development as a resort by Maldives Marketing and Public Relations Corporation (MMPRC) and was to be managed by Huravee International Pvt. Ltd.
The development agreement was signed on 24th August 2015 between the Tourism Ministry and Huravee International, with former Minister of Tourism Ahmed Adeeb signing on behalf of the ministry. The project envisioned 97 private villas, 100 rooms, and three restaurants in collaboration with international hotel chain Meliá Hotels International, with an opening originally scheduled for 2017.
Despite these ambitious plans, only about 80% of the resort’s construction has been completed. The project faced numerous delays and financial difficulties, culminating in the need for a court intervention to address the outstanding debts of Huravee International.
The development of Kalhudhiyafushi also came under scrutiny during the Anti-Corruption Commission’s investigation into the MMPRC embezzlement case. The island’s lease and the project’s financial handling were part of broader allegations of misconduct involving several tourism development deals.
The island’s strategic location and its partially completed infrastructure make it an attractive opportunity for new investors. Potential buyers have the advantage of a substantial portion of the development already being completed, providing a head start towards finishing the resort.
The sale of Kalhudhiyafushi represents both a challenge and an opportunity. For potential investors, it is a chance to revitalise a stalled project and bring a new luxury destination to the Maldives’ renowned tourism portfolio. With proper investment and management, Kalhudhiyafushi could still realise its potential as a premier tourist resort, offering a unique and luxurious experience in the Maldives.
