International Hotel Investment (IHI), the holding company of the Corinthia Hotels Group, announced plans on Tuesday for the redevelopment of the former Ħal Ferħ site near Golden Bay into a high-end low-rise mixed development.

The announcement was made through a statement published on the Malta Stock Exchange.

On the basis of valid planning permits, IHI said it “intends to pursue an upmarket low-rise mixed development focused principally on a luxury hotel and spa complemented by serviced villas and bungalows.

“Having signalled these intentions, as per contractual mechanisms in the emphyteutical deed and the current planning permit, a series of processes has now commenced, the first being a public consultation on changes to the development brief for the site.

“When this process is complete, the normal planning application process will commence in parallel to a triggering of the emphyteutical deed’s mechanisms for the adoption of a mixed-use scheme, all of which are public processes.”

IHI acquired the site, a former military rest camp and former tourist complex run by Air Malta, on perpetual emphyteusis from the Government. It has remained unused for several years.

The development is limited to no more than 12,700 square metres, 20 per cent of the site’s total area. IHI stated that half the built footprint may be developed over two floors, while the other half can be developed to a single storey.

Maximum development is not to exceed 25,000 square metres of gross floor area.

It currently enjoys a valid planning permit issued early in 2013 for a mass-market timeshare development comprising 216 self-catering apartments and a number of villa-style pavilions.

The emphyteutical deed of 2009 cites tourism as a use for the site but included a mechanism for the conversion of part of the gross floor area to residential.

Upon taking over the site in 2015 as part of the acquisition of the Island Hotels Group, IHI declared its intention to re-design the development, whilst retaining the limitations on the overall footprint and volumes, as also a maximum height of two floors for half the buildings, and one floor for the rest.

“This is in keeping with its rural, Maltese context,” IHI said.

The holding company wrote that it wishes “to reaffirm its intention to exalt the Maltese character of the development and retain the current limitations on footprints, heights and development volumes cited in the original title and development briefs for the site.

“This in keeping with Corinthia’s international positioning as a luxury brand which aims to target a more discreet clientele by proposing a low-rise, extensively landscaped mixed-use development as found across the more upmarket destinations in the Mediterranean.”

IHI said it will keep the market informed of developments as these take their course over the next months and years.