Exalco Finance plc on Wednesday announced that Exalco Properties Limited has completed the acquisition of the building known as the Savoy Hotel from Almo Properties Limited for €5.4 million.

Through the deed of sale signed on 20th January 2023, the parties agreed to set-off the aforementioned price due against payables then due and owing by Almo Properties, such that as a result of the set-off, the company tendered to Exalco receipt in full and final acquittance of the property’s price.

The Savoy Hotel, located right on the border between Sliema and Gzira at the top of Rue d’Argens hill, has fallen into a state of ruin over recent years after a long-running legal saga between different members of the site’s former owners and groups of potential buyers. The building was first known as Villa West End before it was renovated as a hotel in 1904. Due to its heritage and architectural value, it is listed as a Category B+ building, with strict restrictions for its preservations.

The legal battle between the site’s owners commenced in 2016, when one group which represented a majority ownership, signed a promise of sale agreement with business centre developing company Exalco. However, just a few months before, a minority owner, holding 1/30th of the property rights, had entered into a different agreement with Melvyn Mifsud, a lawyer.

The court battle continued for six years, with a number of shareholdings changing hands. When the final judgement was made, a judicial sale of the site was ordered with bids starting at €2.8 million. Almo Properties, which has the same shareholders as Exalco, was left with an 80 per cent stake.

F. Schembri & Sons Limited, owners of Ferretti Catering, and operators of Ferretti Restaurant in Birzebbuga, owned most of the rest after buying out some of the original owners as well. Almo Properties eventually won the court auction, which included bids from Schembri & Sons Limited, a subsidiary of F. Schembri & Sons, and also Ray Zammit. The winning bid came in at €12.8 million.

Last September, Exalco Group CEO Alex Montanaro explained that the company does not intend to turn the property into an apartment block, expressing a wish to “do something different”. He remarked that plans are still being finalised, yet assured residents of the area that the company is determined to do something “beautiful” while still ensuring “the old Savoy building is fully respected and renovated sensitively”.