Maldives Realty Project Unaffected: Tata Housing

While infrastructure major GMR is facing problems in Maldives, Tata Housing, which is among the few corporates operating there, says its Rs 900 crore real estate project in the country is unaffected.

According to media reports, the Maldivian government has sought to take over the site given to the special purpose vehicle (SPV) firm Apex Realty, which is a joint venture between SG18 Developers, a localcompany in Maldives and Tata Housing. The site was allocated to build a brand new Supreme Court building.

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 Maldives 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 on the same ” said Brotin Banerjee, managing director and chief executive, Tata Housing.

According to him, the company is in the planning stages on the other free- for-sale plot. It wants to launch the project in the near future..
Banerjee added: “Though there is a delay in time line of the project and change in the government, we believe that 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 1 million sq ft of property in Male in a joint venture with SG18 Developers where Tatas held 65 per cent stake in the company.

Tata Housing was also supposed to get 150,000 sq ft area which the company can develop as retail space and another 45-acre island where it can develop luxury villas of around 20,000 sq ft each.

Banerjee said the island component was second phase of the project and they were yet to work on its design and planning.