The Curious Case Of 83, Spinola Road
The saga surrounding the multi-storey seaside property on Spinola Bay makes one realise just how confusing things can get when you don’t check the fine print. 83, Spinola Road in St. Julians is a property within spitting distance of the sea. Situated in an picturesque location within Spinola Bay, it is near some of Malta’s top eateries and the entertainment hub of Paceville.
This is valuable property that could be developed into some prime real estate. But it is said that Malta only made €35 from its sale.
It is currently owned by a company called Eighty Two Co. Ltd – but this land has not come into their hands without controversy.
The real story goes back over a century ago, and involves numerous government administrations, the Church, and former Minister for Land Jason Azzopardi. It also involves the transfer of the land without any legal basis, illegal building on the public foreshore, alleged political pressure, and both a severe lack of minutes and as well as misleading documentation.
It all ends with a PN administration that may have given the go ahead for this property to be sold at a massively undervalued price, netting the government a tiny profit – anywhere between €35 and some thousand – in a deal that could have been worth €2.5 million.
A timeline of events
1897
The Abbazia Spinola, a church organ, transfers the property at 83, Spinola Bay to a man named Antonio Coppini in a temporary emphyteusis (ċens in Maltese) for 99 years, at an annual rent of €0.70.
1975
Antonio Coppini’s heirs consolidate their ownership of the property, and when they do, they incorrectly state they have 72 remaining years on their ownership, instead of 23 years, as the original emphyteusis stated.
During this time, illegal building on the foreshore commences.
1981
The sole remaining heir of Coppini transfers the land to a third party. In this document, it once again proclaims the emphyteusis to be valid for 150 years, incorrectly.
1986
The property is sold by the third party to another third party, for Lm7,000. The sale continues to perpetuate the mistakes in the earlier deeds.
1998
A company called E.G. Property Holdings Ltd acquires the remaining period of the temporary emphyteusis of 83, Spinola Road, which is thought to be valid for another 47 years from a total 150 years.
Technically, at this point, they had no claim to the land as the original emphyteusis had expired.
August, 1998
A petition is submitted by a group of St. Julian’s residents to the Planning Authority and the Commissioner of Lands, claiming that the land being developed at 80-83 Spinola Road had extended to the foreshore and onto public property.
2001
St. Julians’ local council enquires into the ownership of the land with the Commissioner of Lands, and expresses concerns about the development on the foreshore.
The St Julian’s Local Council files a judicial protest against the Commissioner of Lands regarding development works carried out on the foreshore.
The Commissioner of Lands files a counter protest, saying it was still trying to figure out who owned the site.
2002
E.G. Holdings requests the Joint Office to recognise it as the new emphyeuta – that is, owner – of the lands. Following legal advice, the Joint Office recognises the company as the new owners.
2003
In February 2003, following verification by the Joint Office, the E.G Property Holdings is informed that it held no legal title to the land.
The Joint Office also considers the illegal development on the foreshore as part of the whole property.
Concerns continue to arise about the extent of the development, largely fuelled by public concerns as well as those of local fishermen that the site encroached on the foreshore of Spinola Bay.
2006
The Government Property Department (GPD) wins a legal action against E.G. Property Holdings Ltd that it had initiated in early 2003. This win declares the site in question as government land illegally occupied and orders the Company to restore the site to its original state.
2009
The previous ruling is confirmed on appeal in March 2009.
Despite the court ruling, the GPD now begins to look into ways of selling or getting rid of the land, now including the part of the foreshore illegally occupied.
2010
A tender for the disposal of the site is issued by the GPD in May 2010. The GPD values the site at €950,000.
E.G. Holdings – now renamed Eighty Two Co. Ltd – submits the only offer, of €192,225. The GPD accepted this offer, subject to its revision to €950,000.
Eighty Two Co. Ltd objects, leading the parties to resolve the matter through arbitration. The appointed Chair Arbitration Committee determined the value of the site as €550,000.
2012
A contract of sale is entered into on 13 April 2012, whereby Eighty Two Co. Ltd acquires 83, Spinola Road for the sweet price of €525,000, to be paid over a five year period until 2017.
The change from emphyteusis to outright sale is done after an unclearly documented meeting between Minister for Lands Jason Azzopardi, Permanent Secretary Pawlu Zahra, and the DG GPD Iman Schembri.
For some reason, sufficient minutes were not taken in the meeting, but at the end of the meeting, the sale becomes finalised.
The Commissioner of Lands informs the Assistant Director Enforcement at the GPD that the matter had been settled as the site had now been sold through tender.
2013
Eighty Two Co. Ltd pays €126,000, with interest.
Interest is charged at five per cent despite the fact that payment was overdue and therefore subject to an interest rate of eight per cent, according to the contract.
2014
Eighty Two Co. Ltd pays another €105,000, corresponding to the third instalment. No interest is paid this time.
2017
At time of publishing, Eighty Two Co. Ltd had an outstanding balance of €308,885 despite the fact that all payments should have been settled by this date.
It seems like when establishing the value of the property and in agreeing to enter into negotiations with Eighty Two Co. Ltd, the GPD failed to safeguard the government’s interests and did not quite secure a price that fairly represented the value of the site.
Not only that, but because of the Church State Agreement found in Chapter 358 of the Laws of Malta – which states that the majority of any money made from the sale of property that is co-owned by the government will go to the ‘Church Schools Foundation’ – the majority of the money from this already undervalued sale must go to the Church, further lessening any profit for the government.
So seriously, could someone please check the fine print next time?
What do you make of the case regarding 83, Spinola Road? Let us know in the comments below.
READ NEXT: Malta’s Constitution Needs To Change
