The State Bank of India (SBI) Male’ branch has announced an auction for the leasehold rights of Dholhiyadhoo Island Resort, located in Shaviyani Atoll, Maldives. The auction is open to both Maldivian and foreign bidders, with the reserve price set at USD 15 million.
Details of the Property and Auction Process
The leasehold rights being auctioned belong to Dholhiyadhoo Investment Pvt. Ltd. The head lessee for the property is Mr. Mohamed Latheef, and the head lease, dated 5th May 2005, is valid for 35 years, until 4th May 2040. An extension of the lease period is available, subject to government approval and the payment of the required fee.
The auction process is set to begin with the submission of bids from 3rd September 2024 to 15th October 2024. Interested bidders must submit their bids before 5:00 pm on 15th October 2024. Bids submitted after the deadline will not be accepted. The minimum bid amount is set at the reserve price of USD 15 million; any bid below this amount will be declared invalid. The auction will take place at 5:00 pm on 15th October 2024 at the 8th floor of SBI Male’ located at Boduthakurufaanu Magu, Republic of Maldives.
Eligibility and Requirements for Bidders
The auction is open to all eligible bidders, including Maldivians and foreign nationals. Foreign bidders must ensure their eligibility under the applicable foreign investment laws of the Maldives. If a foreign national, company, or limited liability partnership (local or foreign) wishes to bid, an authorised representative must be appointed before the bid submission.
Bidders are required to submit a set of bid documents in a sealed envelope, which should be dropped in the locked “Bid Box” located on the 8th floor of SBI Male’. The documents must include a duly filled bid application (available on the SBI website), an authorisation letter for the appointed representative (if applicable), a self-attested copy of the national identity card or passport of the bidder or authorised representative, and a registration certificate and board resolution in the case of a company or limited liability partnership.
Additionally, bidders must provide evidence of an Earnest Money Deposit (EMD) of USD 15,000, which can be deposited via an SBI cheque, a banker’s cheque in favour of “State Bank of India Male’,” or by transferring funds to the specified SBI Male’ account.
Terms of the Auction
The auction will be conducted by a three-member committee from SBI Male’. The highest bid meeting all the auction terms will be declared the “Successful Bid,” and an “Award Letter” will be issued to the successful bidder. The EMD will be appropriated towards the second instalment of the final bid amount for the successful bidder, while it will be refunded to the unsuccessful bidders.
The successful bidder must adhere to a payment schedule: a first instalment of USD 1 million within seven days of receiving the Award Letter, a second instalment of USD 5 million within 30 days, and the remaining balance within 60 days. The bank reserves the right to amend these terms. If the full payment is received as per the auction terms, the bank will request the relevant government authorities to initiate the transfer of the head lease or ownership. If the transfer is not completed within a reasonable time frame, all money will be refunded to the bidder without interest.
Bid Forfeiture and Other Conditions
Failure to meet the payment deadlines may result in forfeiture of the EMD and additional penalties. If the successful bidder does not deposit the first instalment of USD 1 million on time, the EMD of USD 15,000 will be forfeited. Delays in subsequent payments will result in further forfeitures, including 10% of the previous instalment amounts.
The auction will be conducted on an “as is, where is” basis, and the bank makes no representations or warranties regarding the property’s condition or suitability. SBI reserves the right to accept or reject any bid, adjourn, postpone, or cancel the sale, or modify the terms and conditions of the auction at any time without prior notice.
Interested parties are encouraged to conduct their own due diligence and may contact SBI Male’ for further inquiries at +960-3320316 or +960-9132586/87.
