Curia leases Apap Institute to Saudi national amid secrecy

A prominent historical property located in the centre of Santa Venera, Malta — known as the Apap Institute — has been quietly leased by the Archdiocese of Malta (the Curia) to a foreign individual, a move that has drawn attention and concern from both religious figures and members of the broader community. According to information obtained by The Shift, the lessee is a Saudi businessman who has recently acquired Maltese citizenship through the country’s Individual Investor Programme (IIP), more commonly known as the passport scheme.

Sources familiar with the matter confirmed that the lease is expected to yield nearly €1 million annually for the Curia. Nevertheless, the businessman’s identity, his intended use of the property—whether for business or charitable purposes—and the complete details of the lease arrangement have not been made public. Even senior officials within the Archdiocese, including some clerics, are reportedly unaware of the specifics, with only the highest ecclesiastical offices, including Archbishop Charles Scicluna, being fully briefed.

A sensitive lease surrounded by silence

The decision to lease the Apap Institute to a Saudi national has stirred considerable controversy — not only because of the secrecy surrounding the deal but also due to concerns about religious and ethical implications. Several senior members of the clergy have expressed unease over leasing a property long associated with Catholic care and service to a businessman from a predominantly Muslim country. These concerns have been compounded by uncertainty over whether the necessary due diligence was conducted before finalizing the agreement.

Despite repeated attempts to obtain clarification, the Curia has declined to respond to media inquiries regarding the lease, the identity of the tenant, or future plans for the property. Questions submitted by The Shift to the Church's media office were met with silence, even after follow-up requests.

Closure of the Apap Institute after 80 years of service

The Apap Institute, previously run by the Dominican Sisters since 1944, operated as a residential care home for elderly women for over eight decades. It was known for providing compassionate, religiously informed care to its residents. In a decision that surprised many, the Curia announced the facility’s closure at the end of 2024. Citing a decline in religious vocations, a shortage of nuns, and the financial burden of upkeep and restoration, the Church justified its decision as being rooted in logistical and economic necessity.

Around 30 senior residents who remained at the Institute when it was shut down were transferred to alternative elderly care homes. While the transition was reportedly coordinated with sensitivity, some families expressed frustration and disappointment over what they described as an abrupt and poorly communicated decision. Former staff members were also affected, with several being transferred or let go.

Families and public left in the dark

The manner in which the closure was handled drew criticism from relatives of the residents, many of whom aired their concerns publicly. Social media became a sounding board for discontent, with posts and comments expressing anger at what some saw as the Church prioritizing profit over its social mission. Critics suggested that the true motive for shutting down the Institute may have been to monetise the valuable property rather than to address the stated logistical challenges.

Rumours proliferated online and in local communities, with speculation ranging from the building being transformed into a boutique hotel or luxury residence to being turned into an exclusive medical or commercial centre. However, as of June 2025, no official development application has been filed with the Planning Authority, leaving the future use of the property uncertain.

Religious and cultural implications of the lease

The leasing of Church property to a private businessman of a different faith carries broader implications in a country where Roman Catholicism is constitutionally enshrined as the state religion. Although the Maltese Church has increasingly adopted a pragmatic approach to managing its extensive real estate holdings — often converting unused convents and ecclesiastical properties into commercial assets — this specific case stands out due to the religious heritage of the Apap Institute.

The lack of transparency has fueled broader concerns about how the Church is managing its patrimony. Some observers argue that the lease contradicts the spirit of stewardship traditionally associated with religious institutions, especially given the property’s historical function as a site of Christian service.

Legal and real estate experts also question the terms under which the lease was concluded. Without public disclosure, there is no way to determine whether the Curia obtained fair market value for the lease or if the process adhered to principles of public accountability.

Growing concern over Malta’s citizenship-by-investment links

Adding to the controversy is the lessee’s reported recent acquisition of Maltese citizenship. The country’s IIP scheme has long been the subject of criticism both domestically and from the European Union, which has raised concerns about transparency, security, and the potential for abuse. The programme allows wealthy non-EU nationals to obtain citizenship through significant investments, often in real estate or government bonds.

In this context, the link between a newly naturalised citizen and a lucrative lease of prime religious property may further undermine public confidence in both the IIP scheme and the Church’s stewardship practices. Critics argue that such arrangements risk entrenching a perception of Malta as a jurisdiction where wealth and influence can easily circumvent public scrutiny and traditional community values.

Church property management under renewed scrutiny

The Church in Malta holds substantial real estate assets, many of which were donated over centuries by devout patrons and religious orders. In recent years, as the number of clergy and religious vocations declined, the Church has increasingly turned to commercial arrangements — including leases, joint ventures, and outright sales — to manage its property portfolio.

However, these commercial initiatives often trigger debate about mission drift. While it is reasonable for the Church to ensure the financial sustainability of its operations, some argue that it must balance economic pragmatism with moral responsibility and transparency.

In the case of the Apap Institute, the lack of public consultation or explanation has led to widespread speculation and unease. Religious and civic leaders alike are now calling for greater openness about how such properties are being managed and who is ultimately benefitting from them.

Conclusion

The decision to lease the Apap Institute to a Saudi national who recently acquired Maltese citizenship highlights increasing friction in Malta between the Church’s operational needs and the public’s demand for transparency and accountability. While the Curia’s decision may be financially motivated — reflecting the economic challenges of maintaining large ecclesiastical properties amid declining vocations — the absence of transparency has cast a shadow over the arrangement. With no clear disclosure about the lessee, the purpose of the lease, or whether proper due diligence was conducted, the Church’s actions have triggered legitimate public concern and criticism from within its own ranks.

This case also highlights broader systemic issues involving Malta’s citizenship-by-investment scheme and the governance of Church-owned assets. When institutions entrusted with moral authority and public trust operate behind closed doors, they risk eroding that very trust. As speculation grows and community concerns deepen, the Church’s silence only widens the gap between its mission and its methods.

Ultimately, the situation calls for a more open, principled, and transparent approach to the management of religious and public heritage — one that respects both the historical significance of such properties and the rights of the communities they have long served.

FAQs

Why was the Apap Institute closed?
The Curia cited a lack of religious vocations, insufficient staffing, and unsustainable operational and restoration costs as reasons for shutting down the facility in late 2024.

Who currently leases the Apap Institute?
The building has reportedly been leased to a Saudi businessman who recently obtained Maltese citizenship through the Individual Investor Programme.

How much is the lease worth annually?
Sources indicate that the lease is generating nearly €1 million per year in income for the Curia, although this figure has not been officially confirmed.

Has the identity of the lessee been publicly disclosed?
No, the Church has not confirmed the identity of the businessman leasing the property, nor has it disclosed the details of the lease agreement.

Was a public tender issued before the lease?
There is no public record indicating that a competitive tender process was carried out for the leasing of the Apap Institute.

What will the building be used for now?
The future use of the Apap Institute remains unknown, and no development application has been submitted to the Planning Authority as of June 2025.

Are there any religious concerns with the lease?
Yes, some members of the clergy and public have expressed concern about leasing a Catholic institution to a businessman from a different religious background.

Did the lease undergo due diligence checks?
It is unclear whether due diligence was conducted on the lessee. The Church has not commented on this aspect despite media inquiries.

How has the public reacted to the closure and lease?
Many families and members of the public criticized the sudden closure and secrecy of the lease, raising concerns about the Church’s transparency and priorities.

Is the Maltese government involved in this lease?
There is no indication of direct government involvement, although the lessee’s citizenship acquisition through a state-run programme has drawn additional attention.