Palazzo Buleben owners seek development green light while negotiating exit sale with government

The owners of Palazzo Buleben have been quietly negotiating the possible sale of the 18th-century property in Żebbuġ to the government, even as they push ahead with a controversial application to turn the historic residence into a boutique hotel, The Shift is informed.

The revelation raises fresh questions about the true intent behind the pending permit, which is expected to receive the Planning Authority’s final green light.

Contacted by The Shift, Żebbuġ Mayor Steve Zammit Lupi confirmed that his council was aware that discussions between the owners and the government were ongoing, though no agreement has been reached.

“We, as council, are against the turning of this unique historic palazzo into a hotel,” the mayor said. “We have held discussions with the government to intervene and buy it from the owners, possibly as a Project Green initiative, but have heard nothing back yet.”

It has been confirmed that negotiations have already been conducted between the government and the owners, and that they were fronted by disgraced former MFSA boss Joseph Cuschieri, now chairman of Project Green. No agreement has so far materialised as negotiations continue.

Yet while these negotiations are taking place behind closed doors, the owners, through Buleben Estates Ltd, have continued to pursue a hotel permit with the Planning Authority.

The application proposes converting the historic palazzo, also known as il-Palazz tal-Baruni, into a 32-room hotel, with 13 additional guest huts scattered across its extensive gardens.

The Planning Authority directorate has recommended the project for approval, arguing that it will “rehabilitate the decaying palazzo” and ensure that restoration is financially sustainable.

Institutional resistance has also faded.

The Superintendence for Cultural Heritage and the Environment and Resources Authority have both withdrawn their objections, while the Malta Tourism Authority has already issued a certificate of compliance, despite mounting industry concerns about hotel oversupply.

Sources told The Shift that the owners’ real intention is not to invest millions in operating a hotel. Instead, they are seeking to increase the property’s market value through the permit.

The palazzo has been listed on real estate platforms for over two years at an asking price of millions, yet no buyers have come forward.

Industry insiders said that once a development permit is secured, the property’s value could increase significantly, making it easier to sell at a substantial profit.

The development is spearheaded by Buleben Estates Ltd, owned by Neville Agius, Reuben Magro and notary Andre Farrugia, who acquired the property in 2018.

Original plans for a 50-room hotel and extensive structural additions were scaled back following objections, but a three-floor extension adjacent to the palazzo and the building of ‘accommodation huts’ within its gardens remain part of the approved design.

Architect Edwin Mintoff is fronting the application.

Dating back to the 18th century, the palazzo was originally built as the residence of Baron Gaetano Azzopardi, physician to the Order of St John.

Objections filed insist that commercialising one of Żebbuġ’s architectural landmarks will irreparably damage the town’s character. Developers counter that without private investment, the property will continue to deteriorate.