The building to which Transport Malta will most likely relocate – at a ground rent of almost half a million euro – belongs to a company that is fully owned by the General Workers Union, The Malta Independent can reveal.

This paper today exclusively revealed that Transport Malta will most likely choose the A3 towers out of six shortlisted bids. The news story was well received by the public and was even followed up by sections of the local press.

The largely uninhabited towers were built by the Montebello brothers but the base structure was purchased for €1.7 million by Paola Estates Ltd in 2010. Paola Estates is a wholly owned subsidiary of GWU Holdings Ltd. The latter company’s directors are GWU Secretary General Tony Zarb and President Victor Carachi.

(Photo: Tony Zarb and Victor Carachi are directors of Paola Estates Ltd.)

This paper can confirm that the GWU owned building is being considered as the number one choice by TM for its relocation. Documents seen by this paper show that six bids were shortlisted, but the offer presented by the GWU-owned company is being considered as ideal, given the office-space layout and ample parking.

The other bids, by order of preference were by K.A holdings for office premises in Santa Venera, Unitrade-Bezzina JV for the Millenia offices in Marsa, Toncam properties for the ex-Multigas premises in Hamrun, Valletta Cruise Port for Valletta Waterfront premises and FXB Qormi Ltd for the FXB premises in Qormi.

The Waterfront premises would have been ideal since they are situated close to the TM (ex MMA) building in Marsa, but it seems that the required changes in MEPA permits and the lack of parking spaces presented challenges that were difficult to overcome.

(Photo: Transport Malta CEO, James Piscopo)

The multi-million Paola project, undertaken by the Montebello brothers, was given MEPA’s green light in 2005. Most of the apartments “with a view” overlooking the Addolorata Cemetery, which are situated in the three medium rise towers, remain mostly uninhabited. The base of the structure, which was built for commercial purposes, remains unfinished.

In order to relocate to the A3 Towers, the building’s designation would have to be changed from commercial to office use. This paper can confirm that the owners had applied for a change of use in 2010 but the application was suspended for some unknown reason. The application was reactivated on 20 May of this year and our sources claim that the target date for the building use to change is the 26th – next Monday. “It seems,” one source said, “that the application was reactivated as soon as the developers got word that the building might be chosen by TM.”

(Photo: The proposed office layout plan for A3 Towers level -1)

Rent close to €500,000 annually

The Malta Independent is informed that TM would have to fork out almost half a million euro annually in rent costs should the deal go through. This would cover the €1.7 million purchase price in less than four years.

The total area being considered for use by TM measures some 4,200 metres squared. At the suggested price this works out at some €117 per square metre, which is considered as an advantageous price. Our sources say that Transport Malta will also have the option of buying the property.

In reply to questions by this paper, Transport Malta denied that it is planning to purchase the A3 towers but failed to comment if it is planning to rent the structure. Questions sent to the Office of the Prime Minister remain unanswered.

See other story: http://www.independent.com.mt/articles/2014-05-23/news/transport-malta-expectedto-relocate-offices-to-a3-towers-for-05m-annually-5127372801/