FES Projects Ltd has finalised its acquisition of a property in Gżira, with plans to develop new retirement and hospitality accommodation on the site of its Euro Guest House.
The announcement, made by financing arm FES Finance plc on Wednesday (today), stated that FES Projects signed the final deed of sale with GOLCO Ltd, the sellers of the property, on Tuesday.
FES Projects, owned by Christopher Vella and Ruben Debono, has been trying to acquire the property, a house located in Ponsomby Street, Gżira, for close to five years.
In September 2019, the company entered into a promise of sale agreement with GOLCO Ltd for the property, including the back garden, subsoil, and overlying airspace. The consideration for the sale of the property was €1.2 million.
However, while the original promise of sale agreement was valid until 30th June 2020, the involved parties agreed to extend the agreement on a number of occasions, in exchange for deposits that would go towards the final settlement.
The third parties who had been renting the property have also since moved out.
The development formed part of FES Projects’ plans to further develop the capacity of its Euro Guest House property by 32 more rooms to have a total room stock of 93. It would have a new gym, swimming pool, meeting facilities, as well as three new food and beverage venues.
The company had stated that should the property be acquired, the guesthouse’s site footprint would increase by 35 per cent.
However, due to the COVID-19 pandemic and the impact it had on the tourism industry, FES Group closed the guesthouse in 2021.
Subsequently, as announced in FES Finance’s Annual Report for 2023, the group resolved to develop the guesthouse together with other adjoining properties – the recently acquired property – to form an independent retirement living and hospitality accommodation.
According to a development permit approved by the Planning Authority in November 2022, FES Projects indents to demolish the existing dwellings and make alterations to the existing guesthouse. This includes the construction of a takeaway establishment at the ground floor, as well as three additional floors.
The permit notes that Euro Guesthouse will be changed from a class 3A property to a class 3B one, specifically used for hotels. The façade will also be retained.
