Island Hotels Group has acquired the perpetual ground rent over a tract of land of approximately 83,000 square metres adjacent to the Radisson Blu Golden Sands Resort and Spa as well as the shares in Hal Ferh Company Limited for a total cost of €12 million.

The purchase was made from the government and Air Malta following a call for tenders.

The Group said it intends to develop the site through its newly established affiliate, The Heavenly Collection Limited, in which its partners in Golden Sands Resort Limited also have a 50% equity interest.

"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 is confident that with the current infrastructure of the Radisson Blu Golden Sands Resort & Spa the additional room stock that this extension on the Hal Ferh site will provide should have a long-term positive effect on the over-all profitability and financial performance of the Group."

In the coming months the Group will draw up detailed designs and plans and work with MEPA to obtain the necessary permits within the context of the development brief already issued by MEPA for this site. The Group expects to be in a position to commence development and construction works by early 2011.

Group CEO Winston J. Zahra said the Group was very excited about this new development.

"This acquisition will enable us to continue building on the success we have achieved at the Radisson Blu Golden Sands Resort & Spa and enable us to consolidate our position in this part of the island. We are looking forward to developing a very attractive, environmentally sustainable product which will lift the overall tourism product in the Golden Sands area."