Government-owned commercial properties to become eligible for 50-year emphyteusis

During an event in Cospicua on Tuesday (today), it was announced that commercial properties owned by Government will become eligible for emphyteusis of 50 years through a new scheme.

Minister for Lands and the Implementation of the Electoral Programme Stefan Zrinzo Azzopardi, who made the announcement, remarked that in 2015, a pilot scheme was introduced through which the leases of Government-owned stores in Valletta could be converted into emphyteusis.

He said that this scheme will now be extended to the rest of the country with updated conditions.

Minister Zrinzo Azzopardi added that the legal notice was published on Tuesday in the Government Gazette, and also provided details about who can apply for this scheme.

Individuals who can apply for this scheme include those who have a valid emphyteutic concession recognised by the Lands Authority when the regulations come into action. These can also include individuals who have a commercial lease provided by the same authority or property that has the title of “casa-bottega.”

Those who have an agreement to operate a Government-owned commercial property can also apply.

The Minister added that with the legal notice, a schedule will also be published that will list which Government-owned commercial properties will be accepted to apply for this scheme.

He remarked that amongst these are those referred to as Use Classes Order of the Planning Authority, falling under categories 2B, 2C, 3A, 3B, 4A, 4C, 4D, 51 and 6A.

These classes include non-residential institutions, educational institutions, tourist accommodation, hotels, offices, retail stores, food and beverage establishments, and buildings that have to do with the light industry and industry related to storage and distribution.

Additionally, there are also properties that for the criteria of this legal notice shall be classified as commercial, such as entertainment arcades, halls, car or tax hiring services, food take-aways, cleaning complexes, bakeries, conference centres, and supermarkets, among others.

The emphyteusis will be worked out at two per cent of the property value which will be reviewed from time to time.

During the conference, Lands Authority CEO Robert Vella provided technical details about the legal notice and its implementation. Parliamentary secretary Carlos Tabone was also present.