Island Hotels acquires Ħal Ferħ for €12m

Island Hotels Group has finalised the terms over the acquisition of the old Ħal Ferħ holiday complex from the government and Air Malta plc for €12 million.

Under the transaction, the hotels group acquired the perpetual ground rent over a tract of land of around 83,000 square metres adjacent to its Radisson Blu Golden Sands Resort and Spa and the shares in Ħal Ferħ Company Ltd.

The group was awarded the tender last March after it was the sole bidder.

In a company announcement on the Malta Stock Exchange yesterday, the group said it intended to develop the site through its newly established affiliate, The Heavenly Collection Ltd.

Its partners in Golden Sands Resort Ltd also have a 50 per cent equity interest in the new affiliate.

"This development will be a natural extension of the Radisson Blu Golden Sands Resort & Spa and will operate on a business model similar to the one currently in operation," the group said. "The group is confident that with the current infrastructure of the Radisson Blu Golden Sands Resort & Spa, the additional room stock that this extension on the Ħal Ferħ site will provide should have a long-term positive effect on the over-all profitability and financial performance of the group."

The group is to draw up detailed designs and plans in the coming months. It is also to work with the Malta Environment and Planning Authority to obtain the necessary permits within the context of the development brief issued in September 2008.

The group expects to be in a position to commence development and construction works by early 2011.