16 properties earmarked for social housing transferred to special purpose vehicle

The National Audit Office Accounts Committee in Parliament yesterday approved a resolution regarding the transfer of property that is earmarked to be used for social housing to Malita Investments plc, a special purpose vehicle.

The transfer will see around 16 joint-office properties passed on through a temporary emphyteusis to Malita Investments plc, given that a loan will be taken from the ECB. The development will see around 680 social housing units built, Parliamentary Secretary for Social Accommodation Roderick Galdes said.

According to the Malita Investment website, “Malita Investments plc was registered by the Government of Malta to operate on an independent and commercial basis, in an initiative aimed at contributing towards longterm investment development in our country in a partnership between the public and private sectors.” It is a special purpose vehicle set up in 2012 to finance the City Gate project.

“Since its incorporation, Malita Investments plc has been capitalised by the Government of Malta through a €25 million cash injection as well as through the transfer of the dominium directum of the International Airport and the Valletta Cruise Liner Terminal sites. As a result of these transfers, ground rents payable on these two properties are now due to and receivable by Malita Investments plc. In addition, the Government of Malta granted the title of temporary emphyteusis over the new Parliament Building and the Open-Air Theatre to Malita Investments plc. Consequently, the urban regeneration of these sites forming part of the Valletta City Gate project is the first development project to be undertaken by the Company,” the Malita Investment website reads.

PN MP Beppe Fenech Adami, during the committee debate, highlighted that the contract allowed for the properties to be used not solely for social housing, but would allow for cultural and educational use, even though the aim was for social housing. As such, the government, Minister Michael Falzon said, had no issue with amending the contract to make social housing the sole purpose. A proviso was inserted.

During the discussion, PN MP Mario de Marco highlighted that the PN agreed in principle with the granting of land for social housing, but indicated that the PN wanted a debate on housing to be held in Parliament.

Mario de Marco said that if government says this will happen in the near future, then they will not tie it to the resolution. Deputy Prime Minister Chris Fearne said that this could be brought up as an item in the first House Business Committee meeting after the Christmas period by the government. As such, the government agreed.

The committee heard that none of the land in question is on ODZ land, and all are sites the Church had given for such projects.

Beppe Fenech Adami told government to take into consideration the concerns of the local councils during planning application stage. PL MP Robert Abela said that this contract does not bypass the planning applications from going through due process.

The resolution passed.