His Majesty’s Government of Gibraltar is pleased to announce that the lease for the transfer of the Eastside reclamation to The TNG Global Foundation group of companies (“TNG”) completed before the close of business on Friday.
His Excellency the Governor signed the relevant lease on Friday and the Government provided TNG with vacant possession of the site.
TNG paid the Government on Friday the £90m of cash consideration which had been agreed when Heads of Terms were reached and announced. This follows the grant of Outline Planning Permission for the project being proposed by TNG for the site of the Eastside reclamation.
Additionally, TNG has already made huge progress in respect of the revetment required to enable the works to Phase 2 of Hassan Centenary Terraces to have commenced and progress.
The value of these works to the taxpayer is in excess of £9m to date.
These works will be followed by coastal protection works that will require the construction of a revetment costed at over £100m . These are essential works for the protection of the existing reclamation, without which the project would not be able to proceed.
The agreements confirm the construction of the affordable homes, berths and parking announced in the Government press release of 18th October 2021, as well the other benefits referred to therein, including free summer parking and the use of the rubble mountain as part of the project, obviating the need to move the rubble at a cost of over £60m to the taxpayer.
Adrian Olivero, for TNG, said: “Since the announcement in October 2021, TNG has undertaken a huge amount of work to get to a position to be able to sign the agreement with the Government last Friday. We have already invested considerable amounts in developing our plans for the area, obtaining Outline Planning Permission as well as carry the cost of the construction of the revetment to the north of the site, to enable Phase 2 of Hassan Centenary Terraces to progress. We now look forward to starting work on the site to make those plans a reality for TNG and, in particular, for the people of Gibraltar who will benefit from a magnificent new and modern development on the Eastside.”
The Chief Minister, the Hon Fabian Picardo KC MP, said: “This is a very positive step forward in the delivery of a great project on the Eastside for the benefit of the whole of our community. The payment of the £90m is a hugely positive development. The plans that have been given Outline Planning Permission will deliver a whole host of new facilities for our people. Additionally, the finalising of this transaction demonstrates a huge amount of confidence in Gibraltar and its economy. Sir Joe’s estimation in 2021 was that the development had a potential economic impact of £2.5 Billion, the whole value of the GDP again. Given inflation, the economic impact of the project is now likely to exceed £2.75 Billion. The benefits to the Gibraltar economy and all entities within it will be massive and the completion of this transaction with a Group that has a demonstrable track record in Gibraltar will therefore be something for everyone to celebrate. Importantly, an area that has been derelict for some years and an eyesore will be transformed by the commencement of works and development into a residential and leisure area without comparison, turning a negative into a positive for all the people of Gibraltar. TNG have now almost completed the two news schools at Europort Avenue and will very soon file plans for the development of the old Bayside plot. TNG’s Founder is also the ultimate owner of Trusted Novus Bank. I therefore now look forward to the commencement of the development of the Eastside area for the economic and wider benefit of the whole of our community.
“Finally, I want to thank all those involved in the work which has enabled us to finalise the conveyance of the plot in question. For the Government, I want to thank Albert Mena (who as Financial Secretary started this negotiation), Hector Montado (the Chief Technical Officer), John Paul Fa and the legal team at Isolas led by Peter Isola, Christian Hernandez, Mark Isola and Samantha Grimes, for their extraordinary work and diligence. I also want to warmly thank Adrian Olivero for TNG, who has been committed to getting this transaction done and the TNG legal team led by Ian Felice, Gemma Vasquez-Arias, Nick Howard and Tania Rahmany at Hassans. Finally, I want to thank GJBS for their work in clearing the site in time for completion and JT Security for the removal of derelict vehicles.”