Front Ħarsien ODZ appeals to the government to reinstate Jerma site as a public space

NGO Front Ħarsien ODZ appeals to the government to reinstate the site of the Jerma Palace Hotel as a public space

A court ordered that the Jerma Palace hotel be sold in an auction to cover outstanding debts
A court ordered that the Jerma Palace hotel be sold in an auction to cover outstanding debts

The government should take all necessary action to reinstate the Jerma site as a public space, Front Ħarsien ODZ said.

In a statement issued this morning, Front Ħarsien ODZ appealed to the government to find legal paths to reinstate the site of the Jerma Palace Hotel as public space.

"Front urges the government to explore all legal possibilities to take the necessary action without delay to ensure that this site is reinstated as a public space. This is a golden opportunity for the government to ensure that Malta is not prohibited from yet another opportunity to enjoy public space," it said.

Front Ħarsien ODZ noted the enforcement notice published by the Planning Authority, which obliged the owners to demolish the building and that the site was to be sold by auction in October.

JefPet Limited, owned by Peter and Geoffrey Montebello, had purchased the Jerma Palace Hotel in 2007 from Libyan investment vehicle Lafico.

The hotel was never developed after it closed its doors in the 2000s and was subsequently sold to the Montebellos. However, financial trouble forced the brothers to search for buyers for the site, namely the late magnate George Fenech and Joe Gasan. Yet nothing became of the plans as a MEPA policy undertaken by former chairman Austin Walker meant that hotel development could not be turned into residential development, but kept as tourist accommodation and hotels.

In August 2016, a court upheld a request by HSBC Bank Malta that it be sold to settle outstanding debts.

According to court documents the derelict site measures almost 38,000 square metres, including undeveloped land and foreshore. The property is valued at €20,772,000.

According to the court decree, the lands that were put up for sale by court auction include the coastline known as il-Gzira or il-Mitquba, apart from the Jerma Palace Hotel.