Maldives realty project unaffected, say Tatas

In 2011, Tata Housing announced it would develop one million sq ft of property in Male in a JV with SG18 Developers

While GMR Infrastructure is facing problems in the Maldives, Tata Housing, among the few companies operating there, says its Rs 900-crore real estate project in that country is unaffected.

However, according to media reports, the Maldives government has sought to take over the site given to Apex Realty, the special purpose vehicle (SPV) which is a joint venture between SG18 Developers, a local company, and Tata Housing.

In 2011, the Maldives government had allocated four plots to the SPV on a 50-year lease. The SPV had to hand over 80 per cent of the apartments (around 280) to the government, while it was allowed to sell the rest (about 70) in the open market.

“Of the free for sale component, the Maldives government has asked us to shift the location of one of the plots. We have asked the government to reconsider the decision and we hope it will rethink, ” said Brotin Banerjee, managing director and chief executive, Tata Housing.

According to him, the company is in the planning stage on the other free-for-sale plot. It wants to launch the project in the near future. “Though there is a delay in the time line and a change in the government, we believe the new government will respect the contract. The construction on plots which is to be handed over to the government is on full steam.”

In early 2011, Tata Housing announced it would develop a million sq ft of property in the capital, Male, in a joint venture with SG18 Developers, where the Tatas held 65 per cent stake.

Tata Housing was also supposed to get a 150,000 sq ft area which the company could develop as retail space and a 45-acre island where it could develop luxury villas of around 20,000 sq ft each. Banerjee said the island component was the second phase of the project and they were yet to work on the design and planning.