St George’s Bay hotel owners receive €400,000 for property deposit

CH Bailey has received a deposit of €400,000 in relation to the sale of its remaining property at the St George's Bay hotel area in St Julian's.

The company said subsidiary St George's Bay Hotel Limited had reached an agreement with Garnet Investment on the promise-of-sale agreement for the property, giving GIL until 30 March 2015 to complete the purchase of the remaining property for €13,743,283.

"As part of the variation, GIL agreed to pay to St George's Bay Hotel a deposit of €400,000 by no later than 30 March 2013. This deposit has been received and, accordingly, that a second ranking charge over the Old Villa in Malta and adjoining areas granted to SGBH by GIL is extinguished," CH Bailey said.

The Cardiff-based investment company sold both Villa Rosa and Dolphin House to Vic Bon Ltd, a Maltese company, now operating under the name Garnet Investment Limited.

Dolphin House, situated in Paceville, was bought for €2.6 million while Villa Rosa, in St George's Bay, was sold for €32 million. In 2009, the former holiday complex Villa Rosa had contributed just over €600,000 in revenue to the total Bailey Group revenue. Dolphin House had been used as classrooms for English language students staying at Villa Rosa before being converted into a fully-fledged English-language school for the EC company.