HDC asks K-Park flats completion by March 2025
The project, initially awarded in 2016 to a Korean company, was supposed to be completed within two years.
The unfinished K-Park apartment project in Hulhumalé, undertaken by Hanbo Company Limited under an agreement with Housing Development Corporation (HDC), has been asked to be completed by March 2025.
This update was revealed in a statement by HDC to the parliament’s State-Owned Enterprises (SOE) Committee.
The project, initially awarded in 2016 to a Korean company, was supposed to be completed within two years. However, seven years on, the K-Park remains incomplete, leaving buyers frustrated and legal issues unresolved.
The K-Park project has faced numerous delays since its inception:
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2016: Contract awarded to Hanbo Tech Korea to build residential flats in Hulhumalé under the K-Park Residence brand.
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2018: Expected completion deadline passes without significant progress.
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2024: Project completion deadline extended to March 30, 2025, following multiple amendments to the agreement.
Despite approximately 70% of the construction being completed, the project has been plagued by contractual disputes, allegations of fraud, and repeated deadline extensions.
A major scandal emerged when one of the shareholders of the project, Hassan Mamdhooh, allegedly sold apartments fraudulently. The accusations have led to ongoing court cases against Mamdhooh, with many affected buyers filing civil lawsuits seeking damages.
To expedite the completion of the project, HDC approved a new amendment to the agreement on September 9. Key provisions include:
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A new deadline of March 30, 2025, for project completion.
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Submission of a performance guarantee by Hanbo within 14 days of signing the amendment.
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Payment of land prices, rent, and penalties for temporarily allocated land by the extended deadline.
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Submission of updated sales reports, land price schedules, and work schedules within seven days.
It remains unclear whether the new amendment has been officially signed.
Hanbo Tech Korea, the main contractor, has distanced itself from the controversies surrounding its local agent, Hanbo Maldives. The company has terminated its agreement with Hanbo Maldives and assured stakeholders that the project will continue without further interruptions.
The delays and scandals surrounding K-Park have drawn significant attention from Parliament.
Galholhu North MP Mohamed Ibrahim has urged the SOE Committee to investigate HDC’s handling of the project. In response, the committee sought details from HDC, which revealed the extent of delays and contractual amendments.
The prolonged delays have left buyers frustrated, with many losing hope in ever receiving their apartments. Several buyers have filed complaints and lawsuits, demanding compensation for damages and breach of contract.
