The derelict Savoy Hotel has been sold off for a whopping €12.8 million during an auction on Tuesday.

The building includes a garden, yard and an adjoining garage previously used as a fuel station.

The auction took place on Tuesday at the courts in Valletta. 

The asking price began at €2.8 million, but Almo Properties Limited (one of the shareholders of the building) won the auction, with the final offer of buying the property at €12.8 million.

Another two bidders - Schembri & Sons Ltd and Ray Zammit - took part in the auction.

Almo Properties is already the owner of 79.778 per cent of the property. Sources said that although the winning bid price was €12.8 million, only 20.222 per cent of the amount will actually be paid by the winning bidder - €2.6 million. 

One of the other bidders, Schembri & Sons, owns a 15.556 per cent stake. 

The former Savoy Hotel, with its multi-faceted bay windows, is a landmark building at the top of Rue D'Argens that has been abandoned for years.

The hotel was such a landmark back in its heyday that the area is still known by that name today.

Despite its state of abandonment and home to illegal squatters the building was granted Grade 2 protection status by the Planning Authority in 2018.

A year later, in 2019, it suffered further damage after rubbish dumped there caught fire.

Following a legal dispute, the court last month ordered that it be auctioned after a minority owner failed to come to an agreement with Almo Properties and Exalco Group.

The auction was first revealed by Newsbook, and Businessnow.mt.

After acquiring the majority shareholding, Exalco Group had plans to develop the scheduled building but the plans were delayed due to disagreements with minority co-owners. 

Previously, Alex Montanaro, CEO of Exalco Group told Times of Malta the company wanted to preserve the old Savoy and do something which "Sliema and Gżira will be proud of".

Almo Properties has the same shareholders as Exalco Group.

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