MIH plc posts interim pre-tax loss, grows asset base

Corinthia Group subsidiary Mediterranean Investments Holding plc has reported a pre-tax loss of €1,050,303 for the six months to June, down from a pre-tax loss of €659,020 in the corresponding period in 2008.

MIH said the first half of the year was characterised by an intensification of efforts on the finalisation of 413-unit Palm City Residences, the luxury village in Janzour, Libya, and the leasing out of units.

By the end of June, 85 per cent of the development was complete and 10 per cent of the units were leased out with negotiations on a significant number of other units at a very advanced stage. The first tenants moved in in early June.

MIH's administrative expenses for the first half of the year at €249,010 and marketing costs at €244,121 were higher than the costs incurred during the first six months of the previous year due to increased activity at Palm City.

The group grew its asset base to €149.7 million from €105.4 million on December 31, 2008, following an increase in construction works in progress amounting to €27.5 million and an increase in cash balances of €12.8 million. MIH said these cash reserves were earmarked for use in finalising the Palm City development as well as to finance the group's equity contribution in Medina Towers.

On July 14, MIH announced the signing of a shareholders' agreement with Libya's Economic Development Real Estate Company to build the 40-storey mixed use Medina Tower on the seafront in central Tripoli.

The development will feature 336 luxury residences for sale, 26,000 square metres of office space for rent and 22,000 square metres of commercial, conference, food and beverage facilities, and 850 parking spaces. The target completion date is end 2013.