White Rocks Development Consortium hopeful deal will be struck soon

● Minister Chris Cardona evasive on negotiations

Rachel Attard The White Rocks Development Consortium (WRCD) is ‘hopeful’ that the deal between the WRCD and the government will be closed in the coming days, The Malta Independent on Sunday has learnt.

Contacted by this newsroom, Minister for Economy and Investment Chris Cardona said that negotiations are still ongoing but have now reached an advanced stage.

Last January this newspaper had first revealed what the project would consist of. At the time the WRDC had reached an agreement with the government for the construction of a mixedused complex on the Pembroke site, which will include a sevenstar luxury hotel, along with leisure, hospitality, residential and commercial units.

In February after MaltaToday reported that the consortium offered €25 million for White Rocks land but plans to make €400 million from the project, this newsroom sent a number of questions to Minister Cardona asking him to give it more details on this project. He was asked to confirm if the amount that the consortium will be paying is true, what was the financial formula they used, and who established the value of the land.

After a number of weeks waiting for a reply, this is was Minister Cardona’s said, “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.”

Speaking to this newsroom Tony Zahra, who is one of the partners at WRDC, said: “There were 11 consortia that placed a bid when the government issued a call for expressions of interest around four years ago. Unusually, all 11 were selected for the second phase of the bidding process. However, eight of them considered the land was worthless and did not even bother to bid.”

The consortium consists of: London & Regional Holdings, which includes Livingstone Brothers (Richard and Ian Livingstone), with group net value assets of €5 billion; Alpine Group, with MHRA president Tony Zahra as 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 TalMaghtab Construction Ltd, and Charles Ellul, director of Elbros Construction Ltd.