Montebellos’ €3.8 million Xemxija land for court auction

The land in Xemxija owned by property developers JPM Brothers that was to be developed into Gemxija Crown’s luxury property over Xemxija ridge, will go on sale by court auction this week.

The six parcels of land, in total comprising 3,215 square metres, are going on sale for a total of €3.87 million.

The land was part of JPM Brothers Ltd’s plans to develop the area into Mistra Heights, a project spearheaded by Gemxija Crown Holdings with financial backing from Kuwaiti real estate magnates Massaleh.

But in 2010, JPM was served with a court notice to pay up €42.2 million and €1.3 million in interest, on a defaulting loan taken out with Austrian-owned Bawag bank. The loan was signed between Bawag and Gemxija Crown for the development of 868 residential units on the site of the former Corinthia Mistra Village.

The portions of land put up for sale comprise of: 800 square metres valued at €640,000; another 343 square metres abutting on Xemxija Hill for €275,000; another 575 square metres of land known as ta’ Xemxija going for €1.4 million; a parcel of 1,231 square metres valued at €1.4 million; a divided portion of land of 52.7 square metres valued at €50,000; and another portion of land forming part of the same territory known as tax-Xagħra, of 215 square metres, for €110,000.

The properties are owned by JPM Brothers Ltd.

Despite the setback for JPM Brothers, owners Peter and Geoffrey Montebello proved able to release their construction stock: in 2010, they sold the unfinished construction on Depiro Street in Sliema, the site of the former Galaxy Hotel, to new developers who eventually completed Belmonte Heights.

They also managed the completion of their signature project, the A3 Towers in Paola. In 2010, they sold 1,800 square metres of basement garage spaces, a ground floor showroom and the first two floors for €1.74 million to General Workers Union subsidiary Paola Estates.