There has still been no agreement struck between the government and the White Rocks Development Consortium over price of the former holiday complex’s land, The Malta Independent, with both parties haggling over the final price tag.
Last January, The Malta independent on Sunday had reported that the White Rocks Development Consortium (WRDC) has reached an agreement with the government for the construction of a mixed-used complex on the Pembroke site, which will include a seven-star luxury hotel, along with leisure, hospitality, residential and commercial units.
But this week sources close to the government told this newsroom that discussions are currently underway in order to establish an appropriate valuation for the White Rocks site. The issue surrounding the valuation is that, technically, it constitutes a ‘re-development’ project since the new project will be built upon a pre-existing development.
The same government sources explained that there are many moving parts to establish an appropriate valuation, such as presentations from the consortium, the Planning Authority’s input and other relevant factors. Sources also claim that, at present, discussions are still ongoing with all relevant parties – seemingly appeasing fears that the project has stalled indefinitely.
This newsroom also sent questions to the consortium about whether the deal was still on the table or whether they were considering abandoning the entire project.
A WRDC spokesperson said that, “As things stands discussions are still in final stages and I believe the finer details are being ironed out with progress towards final closure. I have no further information on finalisation dates of agreement yet.”
In comments given to this newsroom earlier this year, WRDC said that their total investment is expected to be €400 million, and will also see large portions of the site dedicated to public space, including a 100,000-square-metre garrigue heritage park, public access to the shoreline, and coastline restoration.
Last February MaltaToday reported that the consortium offered €25 million for White Rocks land but plans to make €400 million from the project. Few weeks later this newsroom spoke with the Minister for Economy and Investment Chris Cardona and in his reply the Minster said that, “as previously stated, the Government is in negotiations with White Rocks Development Consortium. This consortium was declared as the preferred bidder, following a transparent and competitive selection process spearheaded by the Privatisation Unit and after the issuing of an International Expression of Interest. It is premature to disclose valuations as negotiations are currently underway; they have however reached an advanced stage.
“As one can appreciate, this is an extensive project and consequently the government, in cooperation with the Privatisation Unit, is committed to negotiate the best possible deal to ensure that this site, which for many years has been left abandoned, will be regenerated in such a manner so that it can contribute to Malta’s thriving economy and tourism industry.”
The consortium consists of: London & Regional Holdings, which includes Livingstone Brothers (Richard and Ian Livingstone), with group net value assets of €5 billion; the Alpine Group, with Malta Hotels and Restaurants Association president Tony Zahra being one of its directors; Bonnici Brothers, a construction company owned by Emanuel Bonnici, John Bonnici and Mario Bonnici; Mizzi Holdings Ltd, owned by Maurice Mizzi, Brian Mizzi and Kenneth Mizzi; Michael Bianchi, who is an investor in various companies and is one of the directors of Airport Investment Ltd; Sea Estate Ltd, whose sole director is Joseph Eucharist Vella of Karkanja Ltd; Elma Ltd, whose directors are Dennis Baldacchino who owns Tal-Maghtab Construction Ltd, and Charles Ellul, director of Elbros Construction Ltd.