Portomaso acquire full ownership of land for Lm800,000

Last Sunday's Maltatoday newspaper broke the news re Spinola Development's negotiation and settlement on the temporary ground rent at Portomaso, which has now been redeemed with full ownership gained by the same company. The full article can be read here.

Excerpts from the same article dated 16th. April 2006 on Maltatoday

"The company is now asking the owners of its 150 or so apartments whether they are interested in redeeming their temporary leases ahead of 2114. No price has yet been set by the company. A spokesperson for the Prime Minister confirmed that with 109 years left until the expiration of the emphyteusis, the amount that would have to be paid for the transfer of the land would have been Lm109,000.

Maurice Tabone, sales and marketing director, said the company wanted to consolidate its asset base: “The law might change so it made sense that we buy it, even since a tender was issued and someone else might bid for it. It was in our interest to redeem the emphyteusis.” ......."

"........“We sent clients a letter informing them we had purchased the freehold, and that ground rent was payable to Spinola Development, and proposed that in the near future whoever was interested could redeem the emphyteusis,” Tabone said.

Owners of the apartments whose prices range from Lm80,000 to over Lm320,000, currently pay a ground rent of Lm1 every year – it would cost Lm180 in 2114 for the transfer of absolute ownership to the dwellers.Several have written back to the company saying they are interested in becoming full owners of their apartments, but are asking to know the price beforehand.
“We haven’t set the formula yet… Naturally, one would have to be reasonable about it,” Tabone said.
Residents forming part of the Portomaso Apartments Residents Committee (PARC) have said they had repeatedly written to the government enquiring whether they could redeem the temporary lease but there was never any acknowledgment from the government.A call for tender was published on 16 August 2005 in the government gazette."


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