Last month, Gozitan entrepreneur Michael Caruana took a huge step by buying the Fort Chambray development in Gozo which had been in a state of abandonment for years. He talks to Steve Mallia about his hopes for the site and for the first time breaks his silence on the controversial acquisition.

When did you realise that buying Fort Chambray was a possibility?

Rather by chance about a year ago: I was walking with an estate agent friend of mine and asked him if he knew of anything interesting and he casually mentioned Chambray. I thought it would be interesting and I love challenges.

Was there a price on it?

I didn't know the price or anything about it at that time. The first thing we did was set up a meeting with Paul Abela as he could lead us to further information and the people involved. At that time I didn't even know who the directors were or to whom it belonged.

How did the process then unravel itself; was it very complicated?

No, not really. Bank of Valletta was pushing hard to liquidate the thing because there was a default in payments. When I started talking to the various directors they wanted to get rid of it because they had problems with the bank, which was pressing them for money and they were going to lose their guarantees. So for them I might have looked like some kind of saviour.

Were you the only person involved in the acquisition?

From the very start I made it clear that either I buy everybody out or I don't want it. I made it clear to Paul (Abela) that I wanted to get everyone out of the place, including the Italian fellow (Roberto Memmo) and the government.

Did the controversy surrounding Mr Memmo make things more complicated?

I treated him as an owner because he was the majority shareholder in Fort Chambray Ltd. But for me it wasn't an issue as long as there was no dirty money involved.

There are people saying that you got it for nothing, that the government gave it to you basically.

They know nothing about the project or how much it costs in real terms. It cost a lot of money... the debts that we have to pay the banks run into many millions.

How much?

We owe the bank about Lm8 million.

And you bought it for about Lm3.5 million.

It was more. But that is a commercial issue so I don't wish to specify the amount.

How do you feel about the criticism regarding this acquisition?

Criticism doesn't bother me much, as long as I know what I am doing and my feet are on the ground. The most important thing is that I relate everything to my brothers. We discuss everything together and once we decide I am happy with that.

Obviously, however, when you read certain articles you consider them as mercenaries for the newspaper they issue as they often try to make a calamitous issue out of it which does not reflect reality.

What do you have in mind?

Certain articles were very unfair. They tried to bring in issues that were not related and involve me in matters that had already been decided by the courts.

Did you view these as personal attacks on you?

Yes. And they were very unfair. They are trying to sell the paper rather than write what's true. But for people like me who take on such a big burden and are trying to do something with it, it is very unfair that these people try to attack in such a manner. There are two tiers to it: they attack you and then moan that Gozo's economy is doing badly. What do they want? If they believe in Gozo's potential, they should accept and promote people like me who are investing their own money. The trend today is to invest abroad. So local people should appreciate the fact that I am investing in my country; I am investing in Gozo and risking all the money.

On the other hand, people say that selling all these flats will make you millions and millions.

I was very glad to read that this property could fetch Lm112 million. I would be very glad to share it with these journalists. I invite them now to come forward if they really believe we can make that sort of money.

You have done your sums though and obviously you would not have gone for it if you did not believe you could make a tidy profit.

Obviously, when you go in for this kind of project - and it is a mega project as you are not selling a single apartment - you do it for profit. I am in business and my aim is to make a profit, though nothing in the region of what has been mentioned. But apart from that I want this to be a landmark. It doesn't satisfy me enough just to make a profit out of it. I would be very glad to make a profit but also for Gozo to gain from this project.

Some people say it's an ugly landmark.

It's very subjective. We are currently having discussions with investors abroad. There are many people interested in the project. I don't know how things are going to turn out. It may look ugly from the port side but if you go around it, it is a truly beautiful place.

But you are going to work on the existing structure, right, and not knock down what is already there.

God knows. I am not ruling it out; it depends on the investors. We have people that are keen to invest there.

Invest in what capacity?

I don't know what the outcome will be, but there is great interest. We want to make a jewel out of this place.

You mentioned benefitting Gozo. How do you envisage that this development will benefit Gozo?

If Fort Chambray becomes an internationally renowned landmark it will attract people to the development and obviously to Gozo itself.

Many people have said already that there is no way that Michael Caruana will be building a hotel on the site.

It's a pity that everybody jumps the gun. I would be very glad to build a very high class hotel there. But, obviously, it has to be feasible. I took the option of a year to decide because I don't want to build a monster and end up bankrupt. If I build a hotel, it has to make sense. But it's a pity that everyone has been commenting on this issue when I have not decided what to do with it. It's a case of everybody pointing his finger without putting his hands in his pocket. It's very convenient to say that Caruana should build a hotel. But who's going to pay for it and ensure it's viable?

What's the main determining factor for you, a renowned managing partner?

The most important thing is to find a serious, steady and strong partner who is capable of sending people to the hotel.

Has anyone expressed an interest?

There are various people.

Are we talking big hotel chains?

I cannot comment at the moment but we have very interesting people who came here and showed an interest. Now they have gone back and are doing their homework. But they were very enthusiastic when they went on the site because it is so unique.

What state is the site in from the physical point of view?

What has been built is in a good state. Nobody has touched the fort itself and it is now my turn. Obviously I am going to do my best to preserve it and that is going to be very costly - more than building new apartments.

But there is no doubt you are going to do the restoration.

I will be doing it because that's what makes it special. The history and atmosphere inside there is beautiful. The more you walk around it, the more you appreciate the history. I want to get the best out of it, for myself and for the country.

Have you had any regrets about buying it?

The only regret is the reaction. The debate in Parliament was disgusting. You realise that most of the politicians didn't even read the agreement.

What upset you most?

The way they were addressing me, as if I had stolen something. I bought this in daylight. Everyone was involved. Either of the two political parties could have disposed of it while they were in government if they so wished. It's a pity that people who are keen to invest in our country are treated in that way.

Is that something that would put you off in future?

While the debate was going on - I was listening to it on the radio - I thought why did I get into this. I could have just sat on my money and there weren't that many people that wanted to buy it.

And are you convinced it will work?

We have done our part. It is costing us a lot of money and energy. But it is very important now that to get this jewel functioning the government tries to promote and improve Gozo's infrastructure - especially accessibility, the roads and the historical sites. We cannot expect people to come here and sit in the sun. We have to give them something special that attracts them to stay.