The Corinthia chain, which is owned by International Hotel Investments (IHI), will be given similar concessions on the price of land as those given to the DB Group for the development of the City Centre project in Pembroke, Malta Today reports today.

Maltese MPs will be asked to waive the condition that any hotel development takes place solely for “touristic” purposes, so as to develop a luxury hotel and mixed-used project.

On the basis of Deloitte’s calculations, Corinthia will pay a compensation of €51.4 million for the waiver of the restriction on mixed-used development, and a €17 million one-time premium, the report says.

In 2015, IHI had signed a memorandum of understanding with the government for the development of the peninsula into a 6-star luxury development.

The six-star hotel project will be the second major project on the St George’s coast to be given the green light by MPs after the DB Group’s City Centre project was granted land at the former Institute for Tourism Studies.

The land will have an annual and temporary ground rent of €195,120 for a term of 99 years. The land will be given on the payment of a one-time premium of €17 million, to be paid in instalments of €4 million within three years from the date of the deed; and the balance payable on a pro-rata basis according to “each portion of net internal saleable area designated for office and residential use on the effective date”.

The company will be paying the Pembroke and St Julian’s local councils the annual sum of €50,000 each for a period of 10 years from date of deed.