Urbanco has decided to provide State Trading Organisation (STO) with two plots of land in return for the STO Hulhumale' Hotel which has remained unfinished for 12 years since the construction began.
Speaking during the Annual General Meeting (AGM) of STO held at the Central Park in Hulhumale', Managing Director Abdulla Saeed revealed that STO and Urbanco have held discussions regarding the hotel and have since come to a settlement agreement. He also noted the settlement agreement has already been signed, which states that Urbanco will provide STO with two plots of land in return for the investment STO has put into the development of the hotel.
Additionally, Saeed noted STO is yet to hand over the hotel to Urbanco as they have not signed the papers regarding the land plots. He also highlighted that Urbanco potentially plans to lease the hotel to a foreign party.
The construction of the hotel began in 2012 and cost about USD7.4 million to build but construction came to a halt in 2014. STO continues to use the building as a warehouse, though a major portion of the project has been completed.