• Court confirms validity of Section 66 Notice

• Victoria Stadium demolition and redevelopment can now commence

His Majesty’s Government of Gibraltar welcomes today’s judgment by the Supreme Court in favour of HMGoG in the case brought by Mr Allan Asquez, owner of VSB Limited, concerning the termination of its tenancy at the Victoria Stadium in the public economic interest.

The judgment confirms that the Section 66 mechanism is constitutional, that the S.66 notice issued by His Excellency the Governor was both lawful and appropriate, and that HMGoG has acted lawfully to obtain vacant possession of the Victoria Stadium site in the public economic interest. The judgment upholds HMGoG’s interpretation of the law as publicly outlined since the outset of this matter.

HMGoG has always acted reasonably, with goodwill and sought a negotiated outcome without compromising the delivery of a National Stadium.

Over the course of negotiations, HMGoG extended multiple settlement offers including compensation for the early termination of the tenancy, a 21-year lease in the new stadium development, and payment for relocation and refurbishment expenses. With a view to avoiding legal proceedings and procuring a settlement of the dispute, these offers exceeded the Claimant’s statutory entitlement of £115,440 and were made in good faith. Unfortunately, the offers were consistently rejected by Mr Asquez whose demands were for more than seventeen times the Claimant’s legal entitlement.

Today’s judgment is therefore also a vindication of HMGoG acting responsibly and in the best interests of the taxpayer and the wider community.

The redevelopment of the Victoria Stadium into a UEFA Category 4 National Stadium is a vital national project that will benefit present and future generations of Gibraltarians. The judgment now clears the way for the Gibraltar Football Association to proceed with the long-awaited redevelopment of the site, with demolition works on the western stand expected to begin later this year.

The Minister leading on the demolition and redevelopment of the Victoria Stadium, the Hon Gemma Arias-Vasquez, said:
“I welcome today’s judgment, which confirms that HMGoG has acted constitutionally, appropriately and in the public interest. While we always sought an amicable solution, including a generous compensation offer which exceeded what he was legally entitled to, Mr Asquez’s demand valued at over £2 million was wholly unreasonable and unjustifiable. With this judgment now in place, the GFA can proceed with the process of redeveloping the Victoria Stadium, and we can deliver a world-class facility that will be of benefit to so many generations of Gibraltarians in the future. My thanks go to all those involved in bringing this claim to a fair and rightful conclusion.”

NOTE TO EDITORS

Mr Asquez’s Claim (VSB Limited):

• Murga Bar: A 149-year underlease at the new stadium development (no specific value assigned in this analysis).

• Loss of Earnings: Compensation of £500,000 or exclusive catering rights at the Europa Sports Facility.

• Dining 54: Settlement of outstanding invoices (£255,000) 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.

Mr Asquez’s Legal Entitlement:

• £55,440 under Section 49(2) for the termination of tenancy.

• £60,000 under Section 56 for relocation and refurbishment expenses.

• Total: £115,440 – the full extent of VSB Limited’s legal entitlements.

HMGoG’s Offer:

• A 21-year commercial lease in the new stadium development, valued at £800,000.

• Inclusion of part of the kiosks’ square metres within the footprint of the new stadium bar (without legal obligation).

• Willingness to resolve disputed rent arrears of £136,000 based on verified figures.

• Willingness to pay for works to Dining 54 if evidence was provided.

Mr Asquez rejected this offer.

ENDS