Work on pioneering €300m Medina Tower in Tripoli to start shortly

Works on Medina Tower, Mediterranean Investments Holding's €300 million, 40-storey mixed-use development in Tripoli, are to start in earnest in the next few weeks, Medina Tower managing director Reuben Xuereb told The Times Business.

The brainchild of MIH - the company established by Corinthia Group in 2006 to pursue landmark real estate projects in Libya - Medina Tower will take four years to complete, Mr Xuereb said.

With total gross space of 200,000 square metres on Tripoli's main boulevard adjacent to the imposing Corinthia Bab Africa hotel, Medina Tower presents the Libyan capital with a pioneering concept - besides being the first mixed-use development, it will feature Tripoli's first real shopping mall, and boast the city's first high rise apartments.

Significantly, it has been designed to become one of the most desirable business and residential addresses in the city.

Mr Xuereb said some of the world's top luxury brands have already shown interest in launching their presence in Libya with concept stores at Medina Tower, and queries from local and foreign residents have started to filter in.

The high-end development will incorporate 58,000 square metres of residential space for sale, 23,000 square metres of office space, 8,200 square metres of retail area, 7,000 square metres earmarked for food and beverage outlets and leisure facilities including a spa and a gym, 5,000 square metres of conference and exhibition space, and 33,000 square metres of underground parking on four floors.

The 'vertical town' design concept was entrusted to Paul Camilleri and Associates. Sidell Gibson Architects of the UK were engaged to assist in developing the architectural details. Sidell Gibson have been responsible for some of London's most distinguished buildings including Paddington Central business quarter, which was named BCO London Region Office of the Year.

The Corinthia Group has operated in Libya for over 40 years and the considerable experience of operating within this emerging - and evolving - market serves MIH in good stead.

Medina Tower is MIH's second project in Libya following the development and ownership of the hugely successful Palm City Residences, the luxury village in Janzour. MIH is currently considering other projects in Libya.

Speaking from Kuwait City, Mr Xuereb explained: "MIH's competitive advantage over other investors coming into Libya is that ultimately we are investor, developer and operator - there is no other company which can boast these three disciplines under one brand.

"Libya has made significant progress over the last few years and the country has opened up even further. The government is investing $500 billion over the next 10 years and this is attracting a considerable number of foreign companies to the country to operate and invest."

Target clients at Medina Tower, where the only A-graded office space in the city will be available, will be both local and international companies operating in Libya.

While marketing Palm City over the past two years, MIH witnessed considerable interest from Libyan residents in purchasing property. Property at Palm City - which is earmarked for extension - is only available for five- to seven-year lease.

The residential property at Medina Tower, on which the development puts greater emphasis than commercial space, will be available for sale for this reason. Mr Xuereb believes demand is very strong. Apartments will be offered in three different layouts, and in finished or advanced shell form. MIH is in discussions with top names for the final fit-out.

Eventual Medina Tower residents will enjoy all the amenities of the fledgling residential and business district where striking hotels are opening one after the next. Following the opening of the Radisson Blu last year, the JW Marriott is expected to open later this year and the Sheraton Four Points and the Intercontinental are earmarked for inauguration in 2011. Three new business towers are also in the offing in the area.

Meanwhile, the Medina Tower site has been fenced off and contractors will be mobilised to begin excavation shortly. Specialised contractors will be engaged to employ top-down construction methodology which will shave eight months off the construction phase.

Construction has been open to international tendering and Maltese contractors and suppliers will be invited to bid as they were at Palm City.

MIH and Corinthia subsidiary International Hotel Investments have a 50 per cent stake in Medina Tower and have partnered the Economic Development Real Estate Company of Libya. MIH, in turn, is a joint venture between the Corinthia Palace Hotel Company Ltd and the Kuwait National Real Estate Company.

Medina Tower's joint stock company has been registered in Libya to ensure the investment enjoys a number of benefits, including duty free on all imports, a 'tax holiday' on initial operations, and the ability to repatriate capital and profits, Mr Xuereb added.

MIH is to offer the equivalent of €30 million in bonds denominated in euro, sterling and US dollar with an over-allotment option of an additional €10 million, redeemable between 2015 and 2017. Up to €15 million has been reserved for shareholders and bondholders of Corinthia Group's listed companies: Mediterranean Investments Holding plc, International Hotel Investments plc, and Corinthia Finance plc.

Proceeds from the bond issue will be directed towards the financing of the Medina Tower and the company's general corporate funding purposes.

This week, the Malta Financial Services Authority approved all existing and forthcoming MIH bonds for admission to the Official List of the Malta Stock Exchange. They have so far been listed on the Alternative List.