Eagle Hills to invest $12 billion in Maldives waterfront project

Summary

• UAE's Eagle Hills announced a roughly $12 billion mixed-use development in the Maldives, its first there.
• The 550-hectare Ras Male site will carry hotels, premium residences, retail and leisure facilities.
• Maldives takes 10% of commercial sales revenue plus a 4% fee on every property transaction.

The latest

A roughly $12 billion mixed-use development in the Maldives was announced Monday by UAE real estate company Eagle Hills, marking its entry into the Indian Ocean archipelago. The Maldives Waterfront and Marina project, in the Ras Male area, will host international hotels, premium residences, retail and leisure facilities, the company said. Construction could begin in the first quarter of next year.

Details

• The site: The development spans 550 hectares, or 1,359 acres, in Ras Male, according to the company statement and comments from founder and chairman Mohamed Alabbar. Eagle Hills described the scheme as mixed-use, combining international hotel brands, premium residential units, and retail and leisure components on a single waterfront and marina footprint.
• The timeline: Alabbar told Reuters construction on the site could start in the first quarter of next year. He framed the Maldives entry as part of a continuing search for large-size projects. Eagle Hills did not announce a completion date or a phasing schedule for delivery of the individual components.
• The government's cut: Minister of Infrastructure, Housing and Urban Development Abdulla Muththalib said at a Dubai press conference Monday that the Maldives government will receive 10% of sales revenue from the commercial development, plus a 4% fee on every property transaction executed within the project.
• Housing component: Muththalib said 5,000 homes will be built for Maldivian families as part of the development. He did not set out eligibility rules, pricing, or a delivery timetable for that housing element, or say how it will be financed relative to the commercial and hotel phases of the scheme.
• Local participation: Alabbar said he would open the door for Maldivian companies and individuals to invest alongside Eagle Hills, arguing that the country belongs to its own people and they should be able to participate. He did not specify the size of any local stake, the instruments involved, or a subscription window.
• The Emaar link: Alabbar said Emaar will "most probably" get involved as well. He is also founder and chairman of Emaar, the developer behind Dubai's Burj Khalifa, the world's tallest building. No role, shareholding or financial contribution for Emaar in the Maldives project was disclosed.
• Company scale: Eagle Hills has a global footprint extending across more than 18 countries and a hospitality portfolio of 45 hotels, according to the company. It did not break down how the $12 billion figure is split between the hotel, residential, retail and leisure elements, or how much will be funded by the developer directly.

Between the lines

The revenue formula is the notable part: a 10% share of commercial sales revenue and a 4% transaction fee give the Maldives government an income stream tied to sales activity rather than a fixed upfront payment. Combined with the 5,000 homes for Maldivian families and Alabbar's stated openness to local co-investors, the structure is weighted toward domestic returns from a foreign-led scheme.

What's next

Watch for a construction start in the first quarter of next year, any formal confirmation of Emaar's role, and details on how Maldivian companies and individuals can invest or how the 5,000 homes will be allocated.

Source: Reuters