Katari Hospitality presents €41 million bid for Evans Building

Katari Hospitality Ltd has presented the highest bid for transforming Evans Buildings in to a strategically located hotel opposite Fort St Elmo.

The company is committed to invest €41 million and has emerged as the front runner among six bidders who submitted an offer in a request for proposals for a 65-year concession to convert Evans Buildings in to a five-star hotel.

The next highest bid of €39 million was made by Iconic Hotel Malta.

Other bids were made by HV Hospitality (€24 million), AX Group (€23 million), SeaBank Hotel (€21 million) and Valletta Luxury Properties (€21 million).

The concession is being handled by Malta Strategic Partnership Projects, a government entity responsible for public private partnership.

The four-storey building was built in 1952 to serve as university laboratories and was subsequently used to house a number of government offices, including the Electoral Commission and the passport office.

The site also includes the lost remains of the Chapel of Bones, which is located beneath the ground. The request for proposals was meant to gauge interest from the private sector for a 65-year concession to transform the building into tourist accommodation.

Development on the Evans Building site is presently regulated by the St Elmo and Environs Development Brief 2011, which allows the consideration of total redevelopment of this site. Nevertheless, a decision has been made to retain the external shell of the Evans building while allowing interior modifications.

The concession period is set for 65 years with a minimum initial investment of €13 million and multiple reinvestments along the concession period.

The terms also include the potential restoration of the underground structures within the first part of the concession period. The annual ground rent has been fixed at €146,000.