C.H. Bailey announced last week it had sold Villa Rosa, which it calls the Old Villa, part of the entire Villa Rosa complex at St George’s Bay.

In an announcement, the company reminded shareholders that on 28 October 2009, the company obtained shareholder approval for its Maltese subsidiary, St George’s Bay Hotel Limited (SBGH), to enter into conditional agreements to dispose of all of its properties in Malta to Garnet Investments Limited (GIL), previously known as Vic Bon Limited, a company incorporated in Malta.

On the same day, SGBH sold Dolphin House to GIL for the sum of €2,329,373.

The board announced last week that SGBH has agreed with GIL to vary the Main Site Agreement to alter the timing of the sale of the Main Site.

Pursuant to the variation, part of the Main Site, which includes the Old Villa and adjoining areas, was sold last week to GIL. In consideration of the accelerated purchase of the Old Villa and adjoining areas, SGBH has agreed to extend the period for GIL to purchase the remainder of the Main Site.

Accordingly, SGBH has now completed the sale of the Old Villa and adjoining areas to GIL for the sum of €15,373,884.

SGBH has agreed to lease back from GIL part of the Old Villa and adjoining areas until 30 March 2015 for a rental fee of €2,000 which covers the entire period.

This is to allow SGBH to complete its existing contracts and to continue operations and maintain the student accommodation business at the property. On completion of the sale of the remaining property, the current hotel operations in Malta will cease.

The business carried on at the Main Site includes the hotel and youth hostel operations carried on from the Villa Rosa Hotel, the Cresta Quay Beach Club and the Old Villa.

In the year ended 31st March 2011, these businesses contributed €893,008 of revenue, which constituted the entire revenue of SGBH. In the same period, SGBH reported an overall operating profit of €93,705.