Ayada Maldives owes $3.4 million in unpaid rent amid lease sale dispute

Ayada Maldives has accumulated US$3.4 million in unpaid lease rent, according to information obtained by Dhauru, as debate continues over a proposed sale of the head lease of GDh. Maguhdhuvaa to the resort's Turkish operator.

The island was leased by the government to Maldives Tourism Development Corporation (MTDC) for resort development. The resort was developed by Turkish businessman Ahmet Aydeniz and began operations as Ayada Maldives in 2011.

The disclosure comes amid reports that MTDC is seeking to transfer the head lease of the island to the Turkish operator for a price critics describe as below market value. MTDC has previously denied claims that it is attempting to sell the property at an undervalued price.

According to information obtained by Dhauru, the operator is required to pay US$850,000 in lease rent every quarter. However, the payments have reportedly not been made for the past year, resulting in arrears of US$3.4 million.

The lease dispute has drawn attention to earlier efforts by MTDC to sell the head lease of Maguhdhuvaa for US$1.5 million.

Under the existing sublease agreement, quarterly lease payments are scheduled to increase throughout the term of the contract, reaching US$1.2 million per quarter during the final phase of the agreement.

The contract has now entered its final five-year period, during which MTDC is expected to receive quarterly payments of US$1.2 million. Critics argue that transferring the head lease for US$1.5 million before the expiry of the agreement would reduce future income that would otherwise be payable to the company.

The issue has also coincided with changes within MTDC's management and board structure.

Dhauru previously reported that MTDC's Board of Directors approved a resolution to submit a rights issue proposal to the company's Annual General Meeting (AGM). If approved and fully subscribed by the government, the rights issue could increase the state's shareholding and give it majority control of the company.

Sources familiar with the matter have claimed that the proposed shareholding restructuring is intended to facilitate the head lease transaction, which had previously faced opposition from a majority of shareholders.

The government currently owns 47 per cent of MTDC.

Former Managing Director Ahmed Niyaz was reportedly removed from his position after opposing the proposed transaction. He was subsequently replaced by former Maldives Marketing and Public Relations Corporation (MMPRC) Managing Director Haris Mohamed.

The proposed lease transaction and the rights issue are expected to be discussed further as MTDC prepares for its upcoming AGM.