Karl Stagno-Navarra A notary from Zabbar is the only bidder for Air Malta’s Selmun Palace hotel, with a €2 million offer which has, however, not been accompanied by a bid bond, as is required by the tender document.
Joseph Lia, who is the owner of the Birzebbuga wedding hall Villa Overhills, confirmed that he had not deposited a €150,000 bid bond as originally requested by the Commissioner of Lands.
Contacted yesterday, Lia explained that the bid “is quite complicated, given that the sale involves money to be paid to Air Malta, its shareholders and the government, while the historical Selmun tower, built by the Knights in 1783, will always remain government property with a series of obligations for its care by the owners of the complex.”
The Selmun tower was leased to Air Malta for a period of 99 years, on condition that the company had to restore and preserve the tower, and guarantee free access to the general public.
Lia said that he was “not in a position” to raise such a high bid bond for the offer that him and his wife submitted, again stating that the offer “is very complicated, not to mention that the Selmun Palace Hotel is undergoing serious difficulties.”
Lia added that even the employees are an issue, which must be resolved by whoever takes over the complex. “I cannot over-expose the risks I could be facing,” Lia said.
The hotel is owned by Selmun Palace Hotel Company Ltd, a fully-owned subsidiary of Air Malta. It is being sold in line with Air Malta’s declared strategy to divest itself of non-core business operations and to focus solely on the airline business.
In fact, one of the conditions is that the bidder for the hotel and the castle has to purchase Air Malta’s entire equity in the company.
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