In Monaco, law no. 1.530 of July 29th, 2022 declared the decommissioning* of a plot of land publicly owned by the State the State located on Esplanade des Pêcheurs, Quai Rainier I Grand Amiral de France and part of Quai Antoine I, with a surface area of approximately 13,282.90 sqm.

The promulgation of this text thus enshrines the tripartite agreement concluded in 2014 between, on the one hand, the Monegasque State and, on the other hand, the real estate development company Caroli Immo and the underwater archaeologist, Franck Goddio, in order to create a real estate and cultural complex on the aforementioned plot of land, thus putting an end to the dispute which had been opposing them for several years.

Indeed, in 2015, the State unilaterally withdrew from this protocol and refused to re-propose a decommissioning bill, especially because of the risks that the real estate programme hung over its compatibility with the logistical needs of the Monaco Grand Prix. The case has been tken to court in 2018, and in 2020 the Supreme Court of Monaco ordered it to pay 157 million euros in compensation to the developer. Noting this historic decision, Prince Albert II then hoped that an amicable solution would be sought by all the protagonists in order to lead to a project that would protect the State, subject to the imperative respect of three conditions:

• to ensure the sustainability of the Formula 1 Grand Prix,
• to guarantee access to the site by the emergency services,
• to preserve the interests of the Principality,

which the developer accepted.

As a result, the State's conviction was dropped and a new version of the project, designed by the renowned architect Rudy Ricciotti, was created.

The real estate and cultural complex, smaller in scale than initially planned, now includes:

• a building of 23 state-owned housing units and shops on the site of the former Yacht Club
• a building of private housing, offices and shops on the esplanade, the 2nd floor of which will be entirely given in kind to the State,
• 182 parking spaces,
• 5,800 m² to accommodate the TV Compound and modular spaces for the Grand Prix,
• premises for the relocation of harbour professionals and the Maritime Police,
• approximately 2000 sqm of public gardens,
• a museum of underwater archaeology named the "Centre de l'Homme et de la Mer" which will bring together, on a surface area of approximately 5,400 sqm, the collections of Franck Goddio, a scientific and research unit, as well as various centres for scientific and educational activities, multimedia and cultural activities,
• a pedestrian link by lifts connecting the complex to the Monaco Ville district.

The consensus of the parties involved will result in a new balanced tripartite agreement, which will make it possible to preserve the Principality's public finances and the interests of Monegasque citizens, since it will ensure that the State obtains significant financial income and substantial gifts. The entire operation will be financed exclusively by the developer.

In addition to the gifs, the developer will also pay the State a 10 million euros balancing cash adjustment as well as a 30% share for the State of the surplus profit that would be realised during the commercialisation of the private housings, compared to the average sale price that was calculated during the planning of the operation. This could amount to just over 100 million euros.

One of Monaco's assets is its optimised management of public finances so as to have no debt or budget deficit, and thus ensure political and financial stability. This is one of the reasons, among many others, that attracts people and companies to settle here.

With this in mind, the Valeri Agency team, with its experience and network, will be able to assist you in your plans to settle in the Principality, in the new developments already built (L'Exotique, 45), those under construction (Bay House, Mareterra) or those to be built in the future, such as Esplanade des Pêcheurs, for which information relating to the marketing of the properties will be available in the coming months.

* Decision by which public property is withdrawn from public use or from the public service for which it was intended, and enters the private domain of the State or the Commune, as appropriate.

Photo courtesy: Groupe Caroli