MTDC sells Emboodhoofushi for US$ 23 mln

  • MTDC business model overhauled
  • Most of rent paid back to the Government
  • MTDC to develop own property this year

MTDC reveals that the company is planning to sell Dh. Emboodhoofushi-Olhuveli, home to Per Aquum Niyaama, to the operators O Plus E Holdings Pvt Ltd for US$ 23.3 million. The Group has been operating the resort in the island from 2012 onward.

A statement released by MTDC said that the sale was initiated to fully pay the lease amount this year, as mandated by the Government.

The company said the current model of subleasing islands for developers and paying back the Government was not sustainable model, as proven by the countless studies and discussions held by the Director's Board. MTDC also said the sale price was according to market rates most beneficial to the company.

The company added that selling the resort to the current operators was also justified and will not result in any damages in any form to the operator.

MTDC will sell another island this year as well.

MTDC said that they will overhaul their business model, towards developing and running their own properties. As such, MTDC will begin to develop their first property this year. The company has assured that a change in the business practices will result in better margins and profitability for their investors.