Townsquare set to go to Stivala Group for reported €70 million

The construction developer Michael Stivala has clinched a memorandum of understanding with the developers of Sliema’s Townsquare, to take over the project.

MaltaToday is informed the price tag for the deal will be close to €70 million, in what is surely the deal of the year.

Michael Stivala is the chairman and CEO of the Stivala Group, which includes the ST Hotels and ST Properties companies, as well the vice-president of the Malta Developers Lobby.

Michael Stivala

Stivala Group Finance had net assets amounting to €189.4 million by June 2021, according to the company’s interim financial statements published on the Malta Stock Exchange. The company is equally owned by the ultimate beneficial owners, Michael Stivala, Martin John Stivala and Ivan Stivala. Carlo Stivala pulled out of the company earlier this year.

The 28-storey Townsquare high-rise in Sliema was approved by the Planning Authority board in 2019, following years of controversy over the height of the skyscraper. Originally, the tower was proposed for 38 storeys.

Townsquare has also applied to add three floors on an approved seven-storey building and change its function from an office block to a hotel.

The hotel will overlook a new square near Villa Drago, which forms part of the project’s footprint.

The company wants to turn a building previously earmarked for office space into a “lifestyle business hotel”. The original office block slated to rise to seven floors was already approved in 2019.The proposed change of use will mean the development can benefit from policies allowing hotels to rise two storeys above local plan limitations.

Moreover, hotels in Sliema are allowed to build an extra storey thanks to another policy included in local plans. The proposed 113-room hotel will overlook the main square and the restored Villa Drago and its gardens.