MIDI announces bond issue
MIDI p.l.c., developers of the Tigne Point and Manoel Island projects, are offering the equivalent of €30,000,000 in seven percent bonds denominated in euro and sterling.
These bonds are of a nominal value of €100 and £100 per bond and mature in 2016 - 2018. They are being issued at par. If the bond issue is over-subscribed, MIDI p.l.c. may issue an additional €10,000,000.
The proceeds of the bond issue will be used mainly to contribute towards finishing the construction of Tigné Point. The Manoel Island and Tigne Point project covers an area of 44 hectares in the heart of one of Malta’s busiest commercial and residential areas. Tigné Point is to include 420 homes, 16,000 sqm of offices, an international-standard retail mall, a 2,500 sqm public square, cafes and restaurants, a clubhouse, sports facilities and a newly-built football pitch to replace the original one operated by Sliema Wanderers. The proposed development at Manoel Island is limited to some 30 per cent of the islet’s surface area and will include low-rise Mediterranean-style residences, a car-free zone, landscaped gardens and a sheltered yacht marina.
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Michael A. Vella
Jan 4th 2009, 18:12
@James Sultana: "If the banks consider financing "the finishing" of this project as a risk: "
The Times report refers to the funds being used MAINLY to contribute towards finishing. Quote: "The proceeds of the bond issue will be used mainly to contribute towards finishing the construction of Tigné Point."
There is no indication in the above report as to what percentage of the funds that part NOT used for finishing consists, or as to how the funds NOT used for finishing are to be utilised,..to pay off bank loan, perhaps?
Sara Zammit
Jan 4th 2009, 11:51
http://www.timesofmalta.com/business/view/20090101/features/stock-market-review-midis-30-million-7-bond-issue
Just click on Business beneath Sections in the menu bar to the left of this site's home page, and you'll find a stockbroker's report on the financial aspect of this bond issue.
A. Saliba
Jan 4th 2009, 10:59
Mr. Sultana believe it or not I have no affiliation whatsoever with the developers, nor do I have anything invested in it. I just happen to be very interested in large real-estate developments.
James Sultana
Jan 4th 2009, 10:41
Mr Saliba - since you seem very familiar (too much I would say) with the plans, quality, design, advantages, etc of the apartments I assume that you are very familiar also with the developers.
Rather than go round in circles trying to promote the apartments CAN YOU PLEASE GIVE US YOUR VIEWS ON THE FINANCIAL ASPECT OF THE BOND ISSUE ?
-If half of them were sold before construction started, and the apartments are so in demand, WHY THE DEVELOPERS HAD TO ASK FOR 30 MILLION FROM THE PUBLIC IN UNSECURED BONDS ?
-If the project is half sold and with such a potential, why did the banks (who are also shareholders!) run away from the profit of such loans? DO THEY FEAR THAT THERE IS A RISK INVOLVED?
-If the banks consider financing "the finishing" of this project as a risk, how can you on the ther hand say that it was already a success on plans?
-Is this story a clear sign that such large scale developments in Malta have created a much bigger supply than the demand and there is a huge risk that they will remain unsold ?
A. Saliba
Jan 4th 2009, 10:36
"that, of course, ultimately depends on the degree of competence of the user."
No, it depends on what the label tells youto do, and most labels clearly tell you not to tumble dry.
A. Saliba
Jan 4th 2009, 10:00
"As with most apartment blocks,you would probably not be allowed to hang your clothes out to dry"
"Clothes hung out to dry in the back streets of Naples may be seen as picturesque, similar displays have no place on tiered open terraces of 'luxury apartments'""
That is why the Tigne apartments have enclosed terraces specifically to be used for drying:
http://www.tignepoint.com/images/photos/ap_t5F_13_large.jpg
http://www.tignepoint.com/images/photos/ap_t4F_2_large.jpg
http://www.tignepoint.com/images/photos/ap_t7F_2_large.jpg
I was wrong when I said the terraces shown in the pic are for hang-drying, but I knew the apartments had enclosed terraces specifically to be used for the latter.
Charles Psaila
Jan 4th 2009, 07:31
As with most apartment blocks,you would probably not be allowed to hang your clothes out to dry,they would take a long time anyway since they will not see much if any Sun if you live below the 4th floor
Michael A. Vella
Jan 3rd 2009, 23:37
@A. Saliba: "Apparently hang-drying ones clothes is now a sign of poverty, and tumble-drying your clothes is a sign of wealth! "
No. It has nothing to do with poverty; it is all a question of the greater convenience and better use of one's time that tumble-driers provide, in much the same way as washing machines and dish-washing machines do.
But it is interesting that you have equated my reference to hang-drying clothes on back-terraces as a sign of poverty, so how do you square that up with your claim that the apartments form part of a luxury development. Clothes hung out to dry in the back streets of Naples may be seen as picturesque, similar displays have no place on tiered open terraces of 'luxury apartments'.
"Never mind the fact that a clothes dryer may fade, shrink and ruin your clothes." ...that, of course, ultimately depends on the degree of competence of the user.
A. Saliba
Jan 3rd 2009, 19:12
@Michael A. Vella:"Luxury pre-supposes the presence and use of a tumble-drier"
That's funny. Apparently hang-drying ones clothes is now a sign of poverty, and tumble-drying your clothes is a sign of wealth! Never mind the fact that a clothes dryer may fade, shrink and ruin your clothes.
The rest of your comment shows that you know absolutely nothing about the development, because, not only are the apartments above-average in size (the average apartment being about 200sqm), but most of the apartments in fact do have a laundry room.
Michael A. Vella
Jan 3rd 2009, 17:52
@A. Saliba "...the terraces you see in the picture are back terraces for clothes-hanging."
That is, 'luxury living' - Neapolitan style. Not only can all the MDi residents view all the movements of all their neighbours, but now with the added bonus of being able to see and monitor what those around them wear throughout the week, and how often they wash their clothes and change their underwear.
Luxury pre-supposes the presence and use of a tumble-drier - though one doubts whether there is enough space in the apartments to accommodate that - or extensive use of laundry services...or, perhaps, hanging out one's washing on the terrace qualifies as part of the 'out door life style'.
Hallina, Sur Saliba.
Sarah Zammit
Jan 3rd 2009, 17:26
Christian Mifsud - you shouldn't be shocked because this is not social housing. In other words, nobody is going to be forced to live there. On the contrary, people are paying hundreds of thousands of euros for the privilege, voluntarily.
A. Saliba
Jan 3rd 2009, 16:58
Mr. Mifsud can you please provide me with some evidence (one floorplan would be sufficient) that there are apartments with only a back terrace and no front-facing balcony. And with "back terrace" I mean the ones shown in the photo. Thank you.
Christian Mifsud
Jan 3rd 2009, 16:37
Artists impression's are one thing Mr Saliba ,reality another. Have you ever heard of the expression "artistic license"?. Why,if you had looked at the original artists impressions I would'nt have blamed you for buying half a dozen.
They are not the back terraces ,they are the only terrace and they face inwards as shown. Not all the ground floors enjoy'Piazza's'( for which read three square or so). and privacy is certainly not a priority. I too have visited,and quite recently as well ,and Mr Whiteman is absolutely right. I criticise because I am shocked at the audicity of it all,I have no personal bone to grind and I wouldn't know Mr Mizzi,who head's MIDI ,if he stood right next to me.
A. Saliba
Jan 3rd 2009, 15:02
Michael Whiteman, the terraces you see in the picture are back terraces for clothes-hanging. The front terraces on the other hand are, as you said, for the occupants to enjoy the outdoor lifestyle, and they offer more privacy than your typical balcony, especially the typical mediterranean protruding balconies, because these balconies are enclosed loggia-style.
As evident from this artist's impression (27708303@N00/372132537" target="_blank">http://flickr.com/photos/27708303@N00/372132537) all the front apartments as well as the higher stories of the highrises behind them enjoy direct sunlight and open sea views. The lower stories have piazza views. All the front terraces are also fully enclosed guaranteeing privacy. I really don't know what you're on about. I have also viewed a couple of these apartments.
To each his own. Everyone has an ideal home. Some enjoy the tranquility of a quiet suburban neighborhood while others enjoy the dense crowded bustling towns.
And no I haven't invested. I wish I had the money! I'm just commenting because I'm sick of everyone criticising this project - reminds me of the whole Portomaso saga.
Michael Whiteman
Jan 3rd 2009, 13:50
Mr Saliba,wrong I'm afraid you are wrong... the whole selling point of these apartments and their outdoor terraces are for the occupants to enjoy the outdoor lifestyle,at least that's how they are being sold.
Having said that I don't know how you can enjoy that with people looking across at and above you. If you then crowd your yard with plants and trellis that would defeat the whole object. These apartments,apart from the top three floors do not enjoy natural light and those on the ground to fifth floor never see it. What you don't see in that photo are the monstrous highrises which overlook the whole of it with their narrow dark pathways which enables one to look into their neighbours parlour/kitchen, and yes, you would be able to see them walk into their bathroom in the morning. Privacy in such a crowded area is a luxury that only those with money to spend on a penthouse can afford.
Take it from someone who has viewed these apartments on more than one occasion. A future hellhole would be one description. I certainly hope you haven't invested.
James Sultana
Jan 3rd 2009, 13:38
@A Saliba:
If the project was so good, had so much potential and had so much guarantees of apartments sold, the banks would give the loan themselves.
The truth is that this is yet another white elephant in the race where each major business family in Malta wants to build the full market potential of such apartments itself, which bubble has now burst where nobody can sell, nobody can repay banks and contractors and no banks are willing to risk. If the sector was healthy, banks wouldn`t run away from it.
A. Saliba
Jan 3rd 2009, 09:54
Michael A. Vella: "The promoters could also have shown the view outwards from the apartments in the picture...but that would not have been a good selling point at all, what with the choice being one of neighbouring blank walls or back walls peppered with windows"
Right.. not a good selling point at all: http://www.flickr.com/photos/allen_venables/3091795979/sizes/o/in/set-72157610903056352/
"And what is the point of having a terrace literally overlooked by a similar terrace immediately above and by neighbouring windows guaranteeing absolute absence of privacy?"
Are you telling me you have total privacy on your roof or back terrace/garden? Nevertheless, as you can see in the photo, all the terraces have trellis which are meant for plants to grow around them, effectively giving the tenant total privacy. And anyway these terraces are meant for clothes-hanging - they're not an entertainment area.
James Sultana: "Mind you, can you tell us how would those living in the lowest buildings get sunlight in their "alley facing windows"?"
The lower apartments have piazza views. The windows facing the narrow alleys are mostly bathroom/store room windows. You can't expect every single room to have direct sunlight!
lgalea
Jan 2nd 2009, 23:20
A. Saliba
"But many people including myself actually enjoy living in dense "concrete jungles""
Well, you said it yourself that they are a concrete jungle
"Most of the Tigne apartments were sold before construction had even started."
As we say in Maltese, min jixtri l-hut fil-bahar jieklu jinten.
Would I risk my money by buying these bonds?
No, thanks.
c.t. busuttil
Jan 2nd 2009, 22:54
What makes me sad is the intended (mis)use and development /transformation of Manoel Island into a low-rise jungle of buildings when it could have been an open area developed for the enjoyment of the people of Malta. What happens after the lease ends? Is everyone thrown out and the island reverted to the people?
f cassar
Jan 2nd 2009, 22:01
lgalea
had these apartments been built under a Labour government you would have probably said:
'Excellent investment, it shows the faith these investors have in our economy..such project has surely generated alot of jobs to build and furnish them'
But no, they have been built under a PN government so they are ugly, uncalled for and perhaps a waste of money in what is a disastrous financial situation!
Sarah Zammit
Jan 2nd 2009, 21:27
I think we should be pleased that such initiatives are being taken. It's good to see people investing and encouraging others to invest. Whether you like the buildings or not is irrelevant. This is a bond issue, not a design competition. At a time when we are all worried about the economy slowing down, it's good to see signs of confidence, like this one.
Vincent Pace
Jan 2nd 2009, 21:12
Ireland banks have gone bust lending on properties of this nature. The property bubble has burst, the banks have stopped lending, having learnt that you cannot lend to people who eventually cannot pay back. And now Joe Public is expected to take the risk. Midi are appealing to people's greed and lo and behold MFSA are nowhere to be found when they should be regulating the whole thing, and protecting Joe Public's interest. MFSA actually allowed Fort Cambridge developers to float a bond, when the actual permits were not even in hand.
James Sultana
Jan 2nd 2009, 20:09
@A Saliba:
You state: "Most of the Tigne apartments were sold before construction had even started.", do you have an idea of how such developments work?
An agent or agency "buys" the apartment on plan by signing a "konvenju" (promise of sale) at a certain price. The agents or agency do so so that they can take the best apartments. Then they try to look for buyers themselves with the hope of making profit. However, if they don`t manage to find the right buyer, they simply drop out of the agreement and lose only the "konvenju" sum. This apart from the fact that some developers pay their sub-contractors with apartments rather than money.
If as you said most of the apartments were sold before construction was even started, I am sure that the developers wouldn`t need to borrow that sum from public bonds, as they would have the "potential income" to cover their loans from the bank.
Mind you, can you tell us how would those living in the lowest buildings get sunlight in their "alley facing windows"?
Michael A. Vella
Jan 2nd 2009, 19:16
@ A. Saliba "Most of the Tigne apartments were sold before construction had even started."
...and so before the buyers having actually seen the finished thing.
More to the point is how many more have been sold and paid for since construction got under way.
Michael A. Vella
Jan 2nd 2009, 19:11
@ A. Saliba "First of all, what you're looking at here, in case you're not realizing, is an aerial view of the REAR of the buildings, and even so, they really look great from this angle. " An obvious choice, when the view from the front is so utterly hideous.
The promoters could also have shown the view outwards from the apartments in the picture...but that would not have been a good selling point at all, what with the choice being one of neighbouring blank walls or back walls peppered with windows,.
And what is the point of having a terrace literally overlooked by a similar terrace immediately above and by neighbouring windows guaranteeing absolute absence of privacy?
Nigel Lawrence
Jan 2nd 2009, 18:51
MORE apartments?? Not impressed. MY money will stay where it is.
James Sultana
Jan 2nd 2009, 18:38
Did someone mention that being in the Eurozone we have a sounder economy? That our banking sector is strong due to its structure and ways of operating? Then how come that the creme-de-la-creme of the Maltese industry, led by the very same person who insisted that the government bought Dar Malta at a bargain and that he would be ready to buy it at that price, is now trying to convine the public to lend him 30 million euros UNSECURED ? Why didn`t he go to the banks and get a secured loan, especially now that interest rates are at a bottom low but is willing higher interest to the public? Or maybe the banks don`t see the project as viable (especially with the sterling losing ground making us unattractive to the british but Midi dont have the guts to stop unlike the 2 "high-rise" Msida developments (metropolis and dinos) have already been halted ?
Marion Pace
Jan 2nd 2009, 17:27
Mr. Saliba as you quoted "But many people including myself actually enjoy living in dense "concrete jungles", especially when the views are so spectacular, as evident in the picture" but those on the opposite site unfortunately do not have such spectacular views as they have these Ugly buildings which have destroyed tigne point for ever!
Adrian sciberras
Jan 2nd 2009, 17:18
It is an investment in a time bomb that is ready to explode.
Look at the Global Bonds trading at 75 to the par.
If brokers recommend them and joe public takes them well then really ppl don't really love their money. For the risk I need a 12% coupon otherwise not worth it.
Joe Public - be careful!
rene joseph
Jan 2nd 2009, 17:03
@ A.Sciberras
that was my first reaction too. A very expensive one too!
Daniel Richards
Jan 2nd 2009, 16:51
Go on dare anyone to tell me that's the ideal place to live in.Just wait till you walk the narrow dark danky walkways they call streets within that concrete hutch.
Are these bonds guaranteed by the way,in other words do you definitely get your money back should things go not quite the way intended?
A. Saliba
Jan 2nd 2009, 16:42
I agree with A. Sultana. This photo is truly amazing - I love the contrast between the meditarranean-style modern apartments and the limstone skyline of Valletta. I also concur that the apartments don't look too good from Valletta.
I cannot believe there are people saying this is ugly. First of all, what you're looking at here, in case you're not realizing, is an aerial view of the REAR of the buildings, and even so, they really look great from this angle. I really wonder what your idea of a beautiful apartment building is..
Muscat Paul
Jan 2nd 2009, 16:20
Turner, a world famous English painter, depicted Tigne point from Pieta, and indeed this painting is a world famous and a unique heritage. From what I read on the Times, the creme de la creme of Maltese "high' society managed to blast the unique view to oblivion. It seems as if the adage " when money talks people listen" has quite a following in Malta.
v.vella
Jan 2nd 2009, 16:08
I would have used this photo for the Malta Monopoly game box !
Gorg Borg
Jan 2nd 2009, 16:03
Funny, with shareholders such as the Mizzi Group, Gasan, Polidano, Vassallo, BOV & Lombard Bank, Middle Sea Insurance etc etc, they needed to borrow from Joe Public.!!!
Possibli they do not have enough money to finish the project themselves.???
A Sciberras
Jan 2nd 2009, 15:51
WOW. REALLY LOOKS LIKE A GETTO !!!!!
a sultana
Jan 2nd 2009, 15:41
i find the above photo spectacular and very mediterranean.... what if the outside part of this project resembled this rather than the white blocks seen from valletta
R. Agius
Jan 2nd 2009, 15:13
It really is ugly!
A. Saliba
Jan 2nd 2009, 15:01
lgalea if you want to live in a low-density suburb, it's your business. But many people including myself actually enjoy living in dense "concrete jungles", especially when the views are so spectacular, as evident in the picture. Most of the properties that go unsold are miniscule ugly apartments in horrible locations and with no views. Most of the Tigne apartments were sold before construction had even started.
lgalea
Jan 2nd 2009, 14:36
The photo clearly show the stacked matchbox concrete jungle that was built needlessly as we have thousands upon thousands of new properties and thousands upon thousands of old properties which remain unsold.