Portelli in Marsaskala: How PA brief paved way for Jerma project

Once earmarked for “mainly” tourist accommodation, a new development brief will allow 26,000sq.m of residential development at the former Jerma hotel site. James Debono traces the evolution of the mega-development now fronted by construction magnate Joseph Portelli

The site of the former Jerma Palace Hotel
The site of the former Jerma Palace Hotel

The Gozitan property entrepreneur Joseph Portelli is rolling up his sleeves once again. In Marsaskala, the goalposts on the redevelopment of the former Jerma hotel site have changed again.

The local plan for the area, approved in 2006, once stated the site could only be developed for tourist accommodation. Now a development brief approved earlier on this year will allow just over half the site to be allocated to tourism, and a good chunk for residential development.

The change comes from an ambiguous policy in the same local plan which left a window open for the development of apartment blocks, by saying that residential and commercial uses may be considered under an approved development brief setting parameters for planning.

Indeed, back in 2008 the Montebello brothers of JPM Construction had presented their application for a hotel and apartments on site. They did not make much headway: the PA rules were made clear then to prime minister Lawrence Gonzi, that the Jerma could only be redeveloped into a hotel. JPM later faced a massive €40 million loan call-in that cooled down their ambitions.

But the Marsaskala local council has always consistently opposed the construction of apartments on the site, arguing that the only development to be allowed should be that of a hotel.

Following the election of a Labour government, an attempt was made by developer Charles Camilleri through the company he co-owned with lawyer Pierre Lofaro, to push for a high-rise development, as well as a breakwater and land reclamation on the site.

The applicants later withdrew the application.   

But following reports in MaltaToday that developer Joseph Portelli was in the process of buying the site, a development brief was proposed in the last days of the Muscat administration, which foresaw a staggering 100,000sq.m of development, 40% of which would be reserved for apartments.

The residential component was later downscaled to 26,000sq.m in a second draft published after the election of Robert Abela as Prime Minister, which now foresaw a total development of 65,000sq.m.

As approved in February 2021, at an average floor space of 150sq.m for each residential unit, this will amount to about 150 new apartments. Effectively the brief increased the developable footprint of the Jerma from its present 8,700sq.m to 17,700sq.m, by extending development beyond the present hotel to a ‘podium’ set below street-level, with site coverage of 52%.

Of the total gross floor area, 26,000sq.m will be allocated for apartment blocks; 33,000sq.m for tourism and conference facilities including swimming pools, gyms and health clubs; and a remaining 6,000sq.m can be allocated to commercial development, namely 4,200sq.m for food and drink establishments, and 1,800sq.m for retail.

Buildings will not exceed 32m above the mean sea level, and limited to 9m above the St Thomas Tower. Considering that the street level is already 7.8m above sea level, this would result in an eight-storey development.

The blocks must include a central plaza, interspersed by landscaped public open spaces to reintroduce “a strong visual link between the historic tower and the sea”.

On Sunday, Joseph Portelli announced in an interview with The Times of Malta that he would be seeking to develop the area into a 500-room hotel, with 130 apartments and a public square in front of St. Thomas Tower.

Transport Malta has also recently issued a tender for the development of a yacht marina in Marsaskala.

Portelli denied that he was involved in the controversial Marsaskala marina proposal, but said that he agreed with the project and that it would contribute to the aesthetic and economy of the south of the island.  In the same interview Portelli revealed that he meets politicians on regular basis, to “speed up the process” for his developments.

Timeline

  • August 2006 Local plan identifies Jerma site to be “mainly used for tourist accommodation” but foresees development brief that would consider “residential and commercial uses”
  • August 2008 Jeffrey and Peter Montebello apply for hotel and residential development on Jerma site
  • September 2016 Portonotos, a company owned by Charles Camilleri and Pierre Lofaro, propose high-rise and land reclamation on Jerma site
  • March 2018 Portonotos ‘downscales’ plans to 12 to 15 storeys
  • July 2019 MaltaToday reports that group of investors fronted by Gozitan entrepreneur Joseph Portelli are in process of buying Jerma hotel site
  • October 2019 Development brief for 100,000sq.m of development, including 40,000sq.m of residential development proposed
  • August 2020 Draft development brief downscales residential development to 26,000sq.m and total development to 65,000sq.m
  • February 2021 Government approves development brief with 26,000sq.m of residential development limiting height to 8 storeys