2/5/2019 White Rocks price tag under wraps

We recently published a revised version of our Privacy Statement and Terms & Conditions
By using this site, you agree to these revised documents including the use of cookies to enhance your experience.
We kindly ask you to take a few minutes to read and understand them.

Accept

11
Popular Stories
Maltese manager killed with 'several bul…
Sunday, January 21, 2018, 15:04 by Ivan Camilleri
Boy in hospital with head injuries after a…
White Rocks price tag under wraps Air Malta flight from London declares m…
It is believed to be lower than the market value of €350 million
Watch: ‘You will go down like Daphne’ - …
Civil Protection Department sees red ov…

Careers

Financial Services

Junior Accountant – Private Equity and...

Accounts Semi- Senior
« Project Manager »
Accounts Senior
Compliance Officer ( Part Time )
Data Analyst

more Careers »

Spotlight
Part of the White Rocks site at Baħar Iċ-Ċagħaq. Photo: Chris Sant Fournier
Dec 24th 2018, 09:45
You could win the $321
million Mega Millions
The price being asked for the development of public land at White Rocks is being kept secret,
jackpot without leaving
although it is believed to be much lower than the estimated market value of at least €350
Malta
million.
Scalable cloud ERP solutions built for a gro…
Other developers are keeping a close eye on the situation in the wake of the ITS deal, in
Bupa Malta’s first awards to recognise outst…
which public land at St George’s Bay was given over by the government for a private, luxury
high-rise at a price considerably below market value. Get ready Malta
Get home safely over the holidays
The government is in negotiations with a private consortium over the transfer of some 450,000
square metres of land in Baħar Ic-Cagħaq – known as White Rocks – to be turned into a
mixed-tourism development with an investment of €400 million.

But when asked, both sides refused to divulge details about the price being offered, despite the
fact that it is not private property that is at stake but a prime tract of land that belongs to the
public.

The Sunday Times of Malta has been advised that the site has a market value of more than
€350 million, which is a conservative estimate. It has also learned that the White Rocks
Development Consortium, led by entrepreneur and Malta Hotels and Restaurants Association
president Tony Zarha, is offering a much lower price that that.

The negotiations are being held under the auspices of the privatisation unit, which falls under
the Ministry for the Economy.

Economy Minister Chris Cardona refused to give details, and so did Mr Zahra.

Asked specifically how much the White Rocks Development Consortium was offering for the
public land, as well as to provide the government’s valuation of the site, Dr Cardona said he
could not provide such information.

He said negotiations were still ongoing and it would be “premature to disclose valuations”, even
though the talks had reached an “advanced stage”.

Nor was there any reply to the question of why the government had not yet made any public
announcements about the project, despite Mr Zahra’s interviews to the media coinciding with
the final stages of negotiations.

https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 1/8
2/5/2019 White Rocks price tag under wraps

Likewise, Mr Zahra, who last week gave an outline of the project to the Times of Malta,
refused to say how much his consortium was ready to pay for the land.

“Mr Zahra has already said what he had to say, and there is nothing to add at this stage,” his
spokesman told The Sunday Times of Malta in reply to a question about the financial offer.

When it was pointed out to the spokesman that the price was of crucial public interest, the
spokesman said that “for the time being this information cannot be divulged”.

In his interview, Mr Zahra said his consortium would pay “top dollar” and called the process
“the most transparent ever”.

When contacted, Michael Stivala, general secretary of the Malta Developers Associaton (MDA),
said his association was closely following the developments and would only support the project
“if the government gets market value for the land”.

“Everyone knows the value of the land in Madliena. The White Rocks area is even better, as it
is almost on the sea. We expect that whoever is taking over this land pays the real market
price for it. If not, it will be just be a case of speculaton out of public land.

“The White Rocks site is the most

beautiful and prestigious site still owned Most beautiful, prestigious site
by the Maltese people and it can be we still own
sold at a very good price,” he added.

According to various real estate agents, the current market price of a tumolo of land in
Madliena, with no sea views, is a conservative €2 million.

The White Rocks site being offered by the government includes at least 100 tumoli of
developable land. That excludes a so-called seven-star hotel – and some 300,000 square
metres of surrounding space for gardens, parks and other facilities on the coastline.

The Sunday Times of Malta is informed that originally, Mr Zahra’s consortium, which also
includes the Mizzi Group, Mich-ael Bianchi and Tal-Magħtab construction, among others –
builders of the Labour Party HQ – offered the government just €22 million for the land transfer.

Further to that, the offer included another €50 million worth of infrastructural upgrading costs,
needed for a development worth €200 million overall.

According to local plans, the White Rocks area is reserved for tourism development, but the
consortium is proposing to build 70 luxary villas, aside from a hotel and other facilities.

The consortium is now proposing a better offer upon the government’s insistence, although this
is still nowhere near the market price for the prime piece of real estate.

It is not excluded that the government will offer a revenue-sharing agreement to reduce the up-
front payment and sweeten the deal for the public.

This is only the latest attempt to develop the area, historically used by the British Forces.

Nationalist governments have made several attempts in the past but failed.

In mid-2014, the Labour government issued a call for expressions of interest in a mixed
development of the 450,000 square metre site, of which only 38 per cent was to be developed.

Of 11 bids, the White Rocks Development Consortium was selected as the preferred bidder.
The negotiations got under way in December 2014.

https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 2/8
2/5/2019 White Rocks price tag under wraps

Recall: the ITS scandal

Projects Malta, headed by Cabinet minister Konrad Mizzi, issued a ‘Request for Tender
Proposals’ for a tourism project on 24,000 square metres of prime land overlooking St George’s
Bay, known as the golden mile. The only tenderer, the Seabank DB Group, was awarded the
site last year.

In a public announcement, Prime Minister Joseph Muscat said the DB Group would be paying
€60 million for the land, currently occupied by the Institute for Tourism Studies.

However, when the contract was published, it resulted that the DB Group would only be paying
€15 million – €5 million up front and the rest (€10 million) staggered over seven years, interest
free.

The government also agreed to slash €150,000 off the annual ground rent, to just €1,000, until
the development was complete.

Despite the fact that the original bid called for a tourism project (a hotel), the DB Group were
given the right to build two residential towers with 209 luxury apartments. Each tower floor (33
in total) is currently being marketed at between €7 and €9 million.

The current planning polices for the area do not allow the building of towers, and the
government, through the Planning Authority, still needs to change the plans to accommodate
the DB Group. No permits have been issued yet for the project.

The MDA, MHRA and Chamber of Commerce and Enterprise have criticised the deal. The
government’s own estimate of the site’s market price was €200 million.

Following the PN’s objections, led by then leader Simon Busuttil, the National Audit Office is
investigating the deal.

ivan.camilleri@timesofmalta.com

11

Computers

Search Amazon Go

SanDisk Ultra 128GB microSDXC Fire TV Stick with all-new Alexa

Memory Card + SD Adapter with A… Voice Remote | Streaming Media P…
£23.94 £39.99
(4974) (68)

SanDisk Ultra 32GB microSDHC Fire TV Stick 4K Ultra HD with all-

Memory Card + SD Adapter with … new Alexa Voice Remote | Streami…
£8.40 £49.99
(4974) (1899)

View more products on Amazon.co.uk

https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 3/8
2/5/2019 White Rocks price tag under wraps

Times of Malta Comment Policy

All comments are subject to moderation. Important:
Please read our Comment Policy before commenting. 
Comments for this thread are now closed ×

29 Comments Times of Malta  Login

 Recommend 4 t Tweet f Share Sort by Oldest

V.Agius • a year ago

Imma l-aqwa li il-Belt kien hemm spettaklu sabih il-bierah........
11 △ ▽ • Share ›

John Stewart Mills > V.Agius • a year ago

Smoke and mirrors......
△ ▽ • Share ›

James McIntosh • a year ago

Everything this Government has it hands on, gives the perception of being crooked
or dodgy. Projects that are cloaked in obfuscating legal speak and spin, always
gives room for suspicion to the common electorate. There has been no
"transparency" from this Government, right from the first day in office, although it
was an election pledge in 2013. It seems that the lady was correct "There are
crooks everywhere you look.........."
7△ ▽ • Share ›

C Cassar • a year ago

"It has also learned that the White Rocks Development Consortium, led by
entrepreneur and Malta Hotels and Restaurants Association president Tony
Zarha, is offering a much lower price that that."

Tony Zahra and his out of date Hotels association simply can't compete on a level
playing field, so they have to get some dodgy deal ripping off the public who own
that land. A disgusting situation and yet again the tax payer subsidising an
uncompetitive, out of date and poor quality Maltese hotels offering.

This land should be put up for auction for ALL European bidders that are interested.
It should first be marketed extensively across Europe and then auctioned in order to
get the best possible deal for the current owner - the Maltese tax payer. Otherwise
this will be yet another theft of land from the public.
9△ ▽ • Share ›

Comments continue after advertisement

Sponsored

If You Are Throwing Away Banana

Peels You Are Making A Mistake
ZenHealthMag.com

Joe Attard • a year ago

Din l Art Helwa has anything to say about the White Rocks?
https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 4/8
2/5/2019 White Rocks price tag under wraps
Din l- Art Helwa has anything to say about the White Rocks?
2△ ▽ • Share ›

Dorothy Brincat • a year ago

I would never agree to the selling off of white rocks, it should be an open park with
no concessions, no hotel and definitely no luxury cabins or anything else..I used to
like the complex but as it is a ruin I believe it is the last opportunity for wild space..
All governments think of is how to get more money for their next new house,dislike
them all.
1△ ▽ • Share ›

Paul Attard • a year ago

They just can’t help themselves can they? This is public land. The public own it. So
the Gov has a complete duty to be absolutely clear and transparent about deals that
involve land and property owned by the public. That includes divulging details such
has price and or cost that we the public can expect to receive or pay. All they are
doing is trying cover up yet another dubious deal that probably is to the benefit of
the usual few at the expense of us... the public.
3△ ▽ • Share ›

M. Camilleri • a year ago

Under wraps? Nothing new under Labour.
△ ▽ • Share ›

Austin Grech • a year ago

I bet this billion euro land, and that's not counting the sea shore value, will be given
next to nothing. If not having the public subsidising the project. It will make billions
and we the people will have free space taken away from us to accommodate a few.
9△ ▽ • Share ›

Patricia Graham • a year ago

'Open, honest, transparency' at its best.
3△ ▽ • Share ›

Comments continue after advertisement

Sponsored

If You Are Throwing Away Banana

Peels You Are Making A Mistake
ZenHealthMag.com

anony mous • a year ago

If there is nothing to hide, this whole transaction should be transparent !
2△ ▽ • Share ›

J Pace • a year ago

Iwa halluni naghmel naqra ohra flus u nimla naqra ohra Panama accounts please
qabel ma nirrezenja minn kap u Prim Ministru. Kif qbadtu mieghi ufff!! Tajtkhom
naqra zieda u holiday fis-sena mhux bizzejjed? Xi tridu iktar!! Halluni!!
3△ ▽ • Share ›

christopher richard • a year ago

Hawwad hemm Guz....ghada min jafu’???
1△ ▽ • Share ›
https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 5/8
2/5/2019 White Rocks price tag under wraps

C. Colins • a year ago

When I read Tony Zahra's interview in The Times about the project, I thought he was
a virgin, going for this project to beautify that area and not to make huge profits.
1△ ▽ • Share ›

Lillian Smith • a year ago

The "Fencing of the Commons" is well and truly at an advanced stage in Malta. A
very small country is being made even smaller by privation of the land.
1△ ▽ • Share ›

Tony psaila > Lillian Smith • a year ago

That's ok mate soon there be nothing left to sell and then they will hand
malta to the other mob
2△ ▽ • Share ›

k. pace • a year ago

Price tag under wraps; more so are the kickbacks.
2△ ▽ • Share ›

Comments continue after advertisement

Sponsored

If You Are Throwing Away Banana

Peels You Are Making A Mistake
ZenHealthMag.com

Carmel Portelli • a year ago

Let us hope that this deal is not going to be like the SD contract where they got
prime land, for a multi million project, for just 15 million. White Rocks is estimated at
350 million.
△ ▽ • Share ›

Victor Bonello • a year ago

And we used to think Lorry Sant was the ultimate...a mere ameture..compared..to
some gentlemen today.
1△ ▽ • Share ›

John Dale > Victor Bonello • a year ago

Tony Zahra has been working with Government for free because he loves his
country Miskin! now his turn to ride the gravy train has come! this was all
conceived in the fourth floor of the PL Headquarters before the 2013
elections and I cannot agree more with Victor Bonello that the past labour
characters were absolute mere amateurs compared to this lot! SHAME
△ ▽ • Share ›

r pace bonello > John Dale • a year ago

I have no issue with any of the developers involved as long as they
pay what this precious property costs. Yes the Owners of the land
(us) must know all the details.
△ ▽ • Share ›

jere lesley roughton • a year ago

xiex?? il belt kien spettaklu? provajt tmur id dar wara?? ghax tal linja bah kien ta!!
https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 6/8
2/5/2019 White Rocks price tag under wraps

△ ▽ • Share ›

Mark J. Magri • a year ago

For what reason/s the White Rocks price tag was kept secret and why was it
estimated to be much lower than 350m Euros?.. It costs even much more!
This whole beautiful wide area [methinks it remains the only nice uninhabited area in
Malta] in Pembroke pertains to the public and I cannot believe why its price is under
wraps! The people are bound to know what is written in contracts and where their
money was invested.
Malta is all ours and no one else has the privilege at stake on it!
GRANPINTO
Hamrun
△ ▽ • Share ›

Albert Mamo • a year ago

Well, if the land is worth is €200 million and €15 million is paid. That would leave at
least €150 million in commissions!!!
Not bad for a days work!!!
△ ▽ • Share ›

jj micallef • a year ago

Will they beat this rip-off?

see more

1△ ▽ • Share ›

Comments continue after advertisement

Sponsored

If You Are Throwing Away Banana

Peels You Are Making A Mistake
ZenHealthMag.com

joe galea • a year ago

I smell big rats!!!
△ ▽ • Share ›

Paul Vella • a year ago

https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 7/8
2/5/2019 White Rocks price tag under wraps

Tony Zahra sure had his reasons thought out when he voted Labour!
△ ▽ • Share ›

Twanny Scerri • a year ago

Do we expect anything better? They are gorging themselves as if there was no
tomorrow. Wonder where some people will be in about 10 to 15 years time?
△ ▽ • Share ›

r pace bonello • a year ago

What is a given is that the developers will make a killing by buying at lower than
market prices whilst selling at market.
△ ▽ • Share ›

ALSO ON TIMES OF MALTA

ECHR judge selection shrouded in An MP encounters a recurring problem

silence for common mortals
8 comments • 19 hours ago 35 comments • 4 hours ago
AvatarFrancis Saliba MD — He has to be expert AvatarPavlaki Panoaroditis — Why should MPs
in being able to work alongside other benefit from preferential treatment for
judges - not to impose on them the … parking at a hospital?

Simon Busuttil vows to go to Quotas for women in parliament: PD

European Court of Justice if all else … says women are not tuna
75 comments • 18 hours ago 15 comments • 3 hours ago

AvatarDenis Tanti — The Strasbourg Court AvatarD Zammit — PD is very right

(ECtHR) repeatedly ‘revoked’ one
Maltese judgement after another and …

✉ Subscribe d Add Disqus to your siteAdd DisqusAdd

🔒 Disqus' Privacy PolicyPrivacy PolicyPrivacy

https://www.timesofmalta.com/articles/view/20180121/local/white-rocks-price-tag-under-wraps.668435 8/8