The government has reacted to a report in Times of Malta and insisted that it will collect every single cent of the €60 million owed by the db Group, which has been granted a 99-year concession for the ITS site in Paceville.

The group says it will invest some €300 million on the project, which will include residential units and a Hard Rock Hotel. The Times said today that the Seabank Group will only be paying €15 million, “not €60 million, as stated by the PM last week.” The newspaper was echoing claims made by Opposition Leader Simon Busuttil in Parliament yesterday evening.

In a statement this afternoon the government said the Times’ report “is deceitful and only intended to knowingly obfuscate one of the most transparent processes in the way the Government evaluates land intended for investment.” 

It reiterated that an “independent and professional” valuation by Deloitte estimated the value of land of the ITS site at St George’s Bay at €56 million, excluding the almost €4 million in taxes at a total value of €60 million. “The Government will collect every single euro cent as per the structure of payments which was set up by the same independent firm.” 

“The €15m value quoted by the Times of Malta is completely misleading since it only includes the development premium component. In addition to this component the Government will receive ground rent for hospitality and leisure facilities as well as ground rent for residential properties or redemption premiums if such residential properties are redeemed.

Taking into account inflation, if the ground-rent is not redeemed, the investor will pay circa €250 million over the lifetime of the lease of land.”

“The deceitful report on the Times of Malta repeats misleading assertions by the Opposition leader and only takes into consideration the initial €15 million. In simple words it is as if someone puts a down payment on a rented house and pretends that he does not have to pay rent for the rest of the lease period.

In a lease, one is expected to pay the premium and the rent as per the structure explained above, which was effectively set up by the international audit firm Deloitte. Through this, the Government will get the total of €60 million.”

The government said this method will be used as a benchmark for future similar deals. This confirms a level playing field to all investors wanting to lease government land for investment purposes in the future.

“When every aspect is taken into consideration, the value of investment will go up to €300 million, a record amount of investment for a local investor. The attacks on this investment and the investors clearly show that the Opposition and its surrogates are hell bent on attacking local private investors.”