• Mr Asquez has challenged HMGoG to publish the figures discussed by the parties in relation to the potential settlement.
• In Mr Asquez’s latest correspondence he sought £1.755 million in cash as well as a lease in the new stadium development.
• HMGoG is advised that Mr Asquez’s legal entitlement is £115,440 – HMGOG offered a substantially higher reasonable amount.

His Majesty's Government of Gibraltar notes the comments made by Mr Allan Asquez, owner of VSB Limited, relating to the negotiations in respect of the demolition and construction of the new stadium.

 HMGoG is committed to transparency and fairness in these negotiations, which have been conducted in accordance with Gibraltar law and with significant goodwill extended to VSB Limited.

As requested by Mr Asquez, the Government is setting out the amounts claimed by him, his entitlement under Gibraltar law, and the offer made by HMGOG to Mr Asquez, which was rejected.

MR ASQUEZ’S REQUEST (VSB LIMITED)

VSB Limited has submitted a claim totalling £1,755,000, in addition to the new premises at the stadium development which would themselves have significant value, putting the total value of what Mr Asquez has claimed at well above £2m. The claim is broken down as follows:

• Murga Bar:A 149-year underlease at the new stadium development. Although this will have considerable value, no specific amount is assigned to it in this analysis of the value of the offer by Mr Asquez.
• Loss of Earnings:Compensation of £500,000 OR exclusive catering rights at the Europa Sports Facility.
• Dining 54:Settlement of outstanding invoices for works carried out in these premises (£255,000) and allegedly funded by Mr Asquez and legal fees (£50,000).
• Victoria Stadium Kiosks:Either alternative catering premises (in addition to the new premises) or a cash settlement of £950,000.

THE LEGAL POSITION

HMGoG is advised by its legal team that the legal position under the Landlord and Tenant Act is clear:

• VSB Limited is entitled to £55,440 under Section 49(2) for the termination of its tenancy.
• An additional £60,000 is payable under Section 56 for relocation and refurbishment expenses.

This totals £115,440, which represent the full extent of VSB Limited's legal entitlements. Contrary to Mr Asquez’s comments, Gibraltar law does not confer a right to alternative premises or additional compensation beyond this amount.

HMGOG'S OFFER

Despite the significant disparity between Mr Asquez’s demands and his legal entitlements, HMGoG had extended the following offer as a gesture of goodwill:

• A 21-year commercial lease (despite the fact that he is only entitled to a rental) in the new stadium development, valued at £800,000. The cost, if any, of the new lease to Mr Asquez would have been subject to negotiation.
• Part of the metres squared of the kiosks at Victoria Stadium would be within the footprint of the new stadium bar, which Mr Asquez claimed he had a right to. HMGoG does not agree that Mr Asquez had any legal right to the kiosks within the stadium and therefore this was a gesture of pure good will.

Additionally, the Government’s understanding is that Mr Asquez owes £136,000 in rent arrears, which Mr Asquez states is incorrect. The Government was prepared to explore whether the figure owed was in fact £136,000 or otherwise and settle on the basis of the amounts that could be agreed after analysis. 

In so far as Mr Asquez’s request for the settlement of all of his outstanding bills and legal fees, the Government has requested evidence from Mr Asquez of these figures, which, to date, has not been provided. HMGoG was willing to pay any amounts due for works to Dining 54, if this amount had indeed been funded by Mr Asquez, but no evidence of this has been produced as requested.

Finally, Mr Asquez should know that all monies paid by UEFA and FIFA were paid to the GFA and NOT HMGoG. The Government received a payment of £16.5 million from the GFA in exchange for the development rights over the site in question.

While HMGoG remains committed to resolving matters amicably with Mr Asquez, it is paramount that negotiations respect the legal framework and the principles of reasonableness and fairness given that these arrangements would be funded by the taxpayer.

HMGoG is willing to continue discussions with Mr Asquez and VSB Limited in good faith, but it has an obligation to ensure that the interests of Gibraltar and its taxpayers are safeguarded in any arrangements and will not enter into any agreement that does not pass that test.  In the process of compulsory purchase Mr Asquez and the Government will have the benefit of an objective assessment of fairness and reasonableness being made by a judge of the Supreme Court if the parties are unable to agree on the right figure for settlement.

A settlement request for circa £1.8 million in addition to a lease for premises at the new stadium development by Mr Asquez, when his legal entitlement is £115,440 will under no circumstances be agreed by HMGOG.