Urbanco’s Managing Director, Fazul Rasheed, has confirmed the recent decision to reduce MVR 200,000 from the lease payment for Hiyaa flats, resulting in a shortened lease period from 27 years to 26 years and three months.
The announcement on Tuesday outlined that the reduction would bring the monthly rent down to MVR 3,984.21 for the next seven years. On Wednesday, Fazul Rasheed addressed the media, providing specifics on the decision.
Fazul clarified that the revised monthly rent of MVR 3,984.21 excludes the monthly maintenance fee MVR 1000 and will take effect from the next month. Responding to concerns about the actual reduction being less than MVR 200,000, Rasheed explained the breakdown of the reduction.
He detailed that MVR 100,000 would be deducted from the rent over the next seven years, with an additional MVR 100,000 achieved by reducing nine months from the lease period. Rasheed clarified, “MVR 100,000 will be reduced for seven years. And as a result of the reduction of [the other] MVR 100,000, the lease agreements with Hiyaa tenants are revised to shorten [the lease period] from 27 years to 26 years and three months.”
Describing it as a relief for Hiyaa tenants, Fazul acknowledged the initial monthly rent of MVR 8,500, including a maintenance fee. However, he highlighted that the monthly rent was adjusted to MVR 6,300 for the next seven years in May.
It’s important to note that in May, the Housing Ministry clarified that the reduction in monthly rent was not a lease reduction but rather an extension of the lease period from 25 to 27 years. This recent decision marks a further adjustment in the leasing terms for Hiyaa flats.