Valletta shop owners who lease government property can take advantage of a scheme that will extend the rent from six months to 45 years.

This six-month renewal causes problems to owners who want to invest

There are 500 shops in Valletta that lease government-owned land – 475 of these have their contracts renewed every six months.

“This six-month renewal causes problems to owners who want to invest because they had problems taking out bank loans,” Land Minister Jason Azzopardi said yesterday.

Through the scheme, which Dr Azzopardi insisted was completely voluntary, Valletta shop owners would be able to invest more and have peace of mind.

Businesses have one year to decide whether they want to join the scheme. Although the lease will expire every 15 years, it will be automatically renewed.

Government architects have divided Valletta into four zones and the lease rates vary according to zone. The rates are not set but will be discussed with the shop owner. For the first three years, the rate would remain unchanged and then increase gradually between the fourth and eighth year until the ninth year, when the full rate would be paid, Dr Azzopardi explained.

He pointed out that he had taken on the task of drawing up the scheme about four years ago and admitted that “it wasn’t an easy one”.

It was welcomed by organisations representing Valletta business owners, including the Chamber of Commerce, Enterprise and Industry, and the Chamber for Small and Medium Businesses – GRTU, which heaped praise on Dr Azzopardi.

Dr Azzopardi said the scheme would help increase investment and business in Valletta.

The number of shops is increasing. In 2008, there were 15,800 shops, rising to 16,915 in 2011 and to 17,255 in October this year.

Those interested in applying can download the form from the Land Department website at www.gpd.gov.mt or pick one up from its Valletta office.