A 475-square-metre parcel of land on the boundary of Gżira and Sliema, on which construction magnate Michael Stivala wants to build an 11-storey hotel, will go under the hammer again after the winning bidder in the last court auction failed to pay the amount due. 

The land, valued at over €2.7 million, was sold by auction for €9 million last month.

The highest bidder was Carmel Buttigieg, who had forced the auction by refusing to sell his original share in the land to Stivala. 

However, the money was not deposited in court as required, so the presiding judge ordered that another auction be held on December 7. 

The site forms part of three premises in Triq Parisio and Triq Moroni and abuts the gardens of the scheduled Villa Bonici. Stivala, who plans to build an 11-storey hotel on it, had secured a deal with 71 of the 72 shareholders but was unable to come to an agreement with Buttigieg. 

The issue then went to court, which ordered that the land be auctioned off. Stivala was to fork out €100,000 in legal fees.

Last month, bidding for the land started at €1.65 million and quickly rose as Stivala, Buttigieg and another bidder, Joseph Vella, sought to outbid one another. Ultimately, Buttigieg secured the property when he trumped an €8.8 million offer with a €9 million one.

Stivala, who is the president of the Malta Developers’ Association, has been granted a permit (PA 5962/21) to develop the site, which is characterised by residential buildings.

A garden that once surrounded a century-old farmhouse was cleared and the area was illegally used as a car park for a number of years, before being sanctioned by the Planning Authority in June last year. 

Under Stivala’s plans, the farmhouse will be demolished and replaced by a nine-storey hotel that will incorporate a gym, spa, games room, indoor pool and conference room, as well as a restaurant at the 10th floor and a pool deck with recreation area at level 11.  Excavation will make way for three floors of underground parking.

The permit was issued in January following a two-hour hearing in which NGOs and residents expressed their objections to the development taking place in a residential area and not a tourist zone.

The commission voted unanimously in favour of the project, which the case officer had recommended for approval, despite over 150 objections by residents.

An appeal before the Environment and Planning Appeals Tribunal is still pending, while a request by objectors to suspend the permit until the appeal is decided was refused.