Singapore construction and property group Chip Eng Seng Corporation Ltd will make its foray into the Maldives together with Singapore-based Park Hotel Group with the acquisition of Kodhipparu Island Resort for US$65 million. JLL was exclusive advisor on behalf of the resort owner, Kodhipparu Investment Private Limited.
Located in the North Malé Atoll, the resort has 120 villas and is a 15-minute speedboat ride from Malé International Airport. Set to open in second quarter of 2017, the resort is under development by world-renowned hospitality design firm Hirsch Bedner Associates, and will offer two restaurants, a harbour beach club, an infinity pool and bar as well as comprehensive spa facilities. The Resort will be managed by Park Hotel Group as Grand Park Kodhipparu, Maldives as the Group enters Indian Ocean’s most dynamic hotel market.
“As an investment destination, the Maldives provides a transparent policy-making environment and generous incentives for foreigners, including full ownership rights, legally-backed investment guarantees and the ability to fully repatriate profits. This paired with its positive economic outlook is attracting Asian investors seeking to enter the international market,” says Nihat Ercan, Executive Vice President, JLL Hotels & Hospitality Group, Asia.
“As a result, we’re starting to notice a rising trend of Southeast Asian, and in particular Singaporean property developers, who are drawn to the market because it offers high yields underpinned by healthy trading fundamentals.”
Excluding the Kodhipparu sale, the Maldives has seen more than US$120 million in investment transactions so far in 2016. Tourist numbers to the island nation reached 1.23 million in 2015, a 2.4 percent increase on the previous year according to JLL’s report Hotel Destinations Indian Ocean.
This deal will mark the ninth resort JLL has sold in the Maldives since 2012, taking the group’s resort sales in the archipelago to US$500 million and over US$600 million in the Indian Ocean region. In February 2016, JLL also advised on the sale of Zitahli Kuda-Funafaru Resort and Spa to Singapore-listed Roxy Pacific Holdings Limited.