The Lands Authority has consented to the €2 million transfer of a public lido in Armier following a request by the concession holders.

This transfer of an original 50-year concession will give the government just €20,000 in compensation, even though the new owners are expected to make millions from the agreement’s remaining 30 years.

Investigations by The Shift show that Lands Authority CEO Robert Vella informed the private owners in 2021 that they were allowed to transfer their original 2005 concession for the Armier Lido, now known as Palm Beach, located in the bay of Little Armier.

The Lands Authority’s only condition is that a laudemium (compensation owed to the concessionaire) be paid to the government for this transfer, which amounts to a maximum of a one-year ground rent of the lido, or less than €20,000.

The Lands Authority consented to the deal.

The concession’s new owners, G3 Finance Plc — controlled by the owners of Mellieha’s Pergola Hotel — have said they spent €2 million on the transfer, primarily in payments to the original owners of the conceded public property, but the public will gain next to nothing from the deal.

Sources at the Lands Authority described the latest transfer of a public concession as “another example of how private businessmen are being allowed to make a killing from valuable public land and amenities with the authorities’ consent.”

According to the original 2005 contract, seen by The Shift, the transfer of the lido could only happen with the written consent of the Lands Authority, a permission which is not usuallyy granted if it does not make economic sense for the government.

Our sources explained that the Authority had every right to withhold its consent and take back the public property if the original concessionaires were no longer interested. Instead, it permitted them to make good money by selling their rights to others.

The government is only legally permitted to issue new public concessions by way of tender or parliamentary resolution, but a loophole exists in the transfer of public concessions, and businessmen have been arranging such deals for the last several years with the help of top Lands Authority officials.

Daniel Grima – Managing Director G3 Group

The Palm Beach Lido’s 50-year concession dates back to 2005, when an agreement was signed with VSV Ltd following a tender.

VSV Ltd is owned by Vincent and Sarah Vella from Mellieha, who also own Adventure Camping and Leisure Ltd.

The company has since been dissolved, and the concession somehow ended up in the possession of Saviour Sammut, Cynthia Sammut, and Claire Calleja, co-owners of Eight Eleven Ltd. This company has accumulated massive debts.

The G3 Group, owner of the Pergola and Solana Mellieha hotels, announced its acquisition of the Armier Lido for €2 million a few months ago, adding that it intended to open a beach restaurant, bar, and other commercial spaces.

When asked to explain how the company acquired the public concession without a new tender, managing director Daniel Grima did not provide answers.

Lands Authority CEO Robert Vella and chairman John Vassallo also chose not to reply to questions from The Shift.

Following public pressure from PN MPs Rebekah Borg and Stanley Zammit, Minister for Lands Stefan Zrinzo Azzopardi admitted in parliament that the Lands Authority had permitted this private deal on public land but failed to provide further details.