Mambo Beach Club in Armier, Mellieħa is set to go under the hammer in November, with bidding due to start at €594,000.

According to a listing published on Subbasta Malta, the property has been valued at €990,000, placing the opening bid at 60 per cent of its valuation. The judicial auction is scheduled for Thursday 26th November 2026 at 10:30am.

What is the bid?

It is important to note that the auction does not involve the outright freehold sale of the land. Rather, what is being sold is the remaining temporary utile dominium over the property, which is for another 14 years and a couple of months. 

This essentially means that the successful bidder would acquire the remaining rights over Mambo Beach Club, subject to the concession and ground rent, rather than ownership of the land indefinitely. 

The temporary utile dominium was held by the spouses Zahra, while Seasport Limited – now known as Bluerock Leisure Limited – had entered into a promise of sale to acquire it in November 2020. In July 2021, Seasport assigned its rights and obligations under that agreement to SEG Concessions Limited, which subsequently acquired the temporary utile dominium from the Zahras for the remaining term of the original emphyteutical concession.

The property, previously known as Belmar Bungalow, consists of a two-storey building in Armier, limits of Mellieħa. The lower floor covers approximately 713 square metres internally, while the upper floor covers around 270 square metres. It also includes an external area of approximately 443 square metres.

The site is bounded by Government property on all sides and is subject to an annual and revisable ground rent of €76,450, according to the auction listing.

The upcoming auction follows a years-long legal dispute involving SEG Concessions Limited and Bluerock Leisure Limited. A Court of Appeal judgment delivered on 28th May 2026 identifies SEG Concessions as the company challenging judicial auction proceedings initiated against it.

Signature Entertainment Group (SEG Concessions Limited) also operate the Buddha Bar Beach, Palm Beach Malta, and Aria Complex, amongst others, meanwhile Bluerock Leisure Limited brings luxury brands to Malta, and has Mavenry in Sliema, Diamonds International, and HEBE, amongst others. 

The dispute stemmed from a July 2021 agreement under which rights and obligations arising from a promise of sale concerning the temporary utile dominium of Mambo Beach Club were assigned to SEG Concessions. The agreed price was €1.7 million, with the court recording that €430,000 had been paid by 7th July 2021 and the remaining €1.27 million was due by 31st August of that year. A separate part of the agreement covered the club's goodwill, permits and licences for €200,000.

The €1.27 million balance was not paid by the deadline. The court held that once 31st August 2021 had passed, the debt had definitively become due and the agreement could be made enforceable through the judicial procedure used by Bluerock Leisure.

SEG Concessions had sought to challenge the enforceability of the agreement and have the seizure and judicial auction proceedings annulled. The First Hall of the Civil Court rejected its claims in July 2025, prompting the company to appeal.

However, the Court of Appeal dismissed SEG Concessions' appeal in May. The court went further, describing the appeal as frivolous and vexatious and concluding that it had been filed to unnecessarily prolong the case and obstruct the judicial auction. SEG Concessions was ordered to pay the costs of the appeal twice.

Company director Dominic Micallef also featured in the proceedings as the sole witness brought forward by SEG Concessions, according to the judgment.

The Mambo Beach Club auction is now scheduled to take place on 26th November, with the €594,000 opening bid representing a substantial discount to the property's €990,000 valuation.