AX sells stake in former Gozo hotel

AX Holdings Ltd has sold its shareholding in Rundle Gardens Ltd, the company that owns the former Duke of Edinburgh Hotel in Victoria, to Island Developments Ltd.

Rundle Gardens Ltd has obtained a permit to develop the hotel site into apartments, a boutique hotel, a shopping complex and a conference hall.

AX Holdings chairman Anglu Xuereb said the AX Group had decided to sell its interest in the project because the investment was no longer considered to be core to its long-term plans.

"Unfortunately, as it has taken many years to get planning approval for the site, the initial concept no longer corresponds with the current business conditions.

"Furthermore, AX Holdings is looking at other investments which offer better opportunities in line with the Group's business plan," Mr Xuereb said.

Island Developments chairman Mark Grech said the property was ideally situated in the centre of Victoria and provided a good opportunity for his group to acquire a prestigious investment.