Singaporean owner to sell Reethi Beach Resort
SC Capital Partners, which has had head lease rights for the island since 2015, has assigned US-based real estate advisory firm CBRE to lead the sale.
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Singapore-based SC Capital Partners has announced the sale of B. Fonimagodhoo, which hosts the Reethi Beach Resort.
SC Capital Partners, which has had head lease rights for the island since 2015, has assigned US-based real estate advisory firm CBRE to lead the sale. CBRE has now opened invitation for proposals from interested buyers.
CBRE said the asset presents a rare opportunity for investors to rebrand one of the most sought-after atolls in Asia Pacific's highest rate-yielding tourism market and enhance the resort’s existing product by refreshing and repositioning the asset to attract a higher average daily rate (ADR) and drive value.
According to CBRE, with the current site coverage ratio of less than 20%, there is development opportunity to build upon a further 13,000 sqm of gross floor area (GFA), increasing key count or creating additional facilities.
Held under a direct lease agreement with the Maldivian government, the initial term can be extended by a further 49 years, equating to 74 years, the company added.
Reethi Beach is located in Baa Atoll, accessible by a 35-minute seaplane or 20-minute domestic flight from Male followed by a 15-minute speedboat ride. The property features 130-villas and extensive facilities including five restaurants and five bars, a spa, two tennis courts, two badminton courts, PADI five-star dive centre and a watersports centre.
In 2015, SC Capital bought B. Fonimagodhoo for $39 million at a foreclosure auction to sell two islands that had been mortgaged for a loan availed from Bank of Maldives (BML) by a family company owned by former DRP leader and recently-appointed Maldivian Ambassador to Singapore Ahmed Tasmeen Ali.
At that time, Reethi Beach was being run by Mahogany company, which consists of a group of Indian investors. However, the sublease agreement with Mahogany expired in 2020 and has not been renewed. At present, it is run by SC Capital on its own.
A year later, in 2016, SC Capital also purchased the lease rights to Sh. Gaakoshibee which is now home to Fairmont Maldives Sirru Fen Fushi resort.
