The public will be given the opportunity to become shareholders of the €600 million real estate developments in Tigné Point and Manoel Island on Monday, as the next stage of the project gets under way.
“We always knew there will come a time when we would need to strengthen our base. The money has to come from somewhere, you cannot just keep borrowing. The shareholders have done their part. But the project is so big that there is space for more investors,” Midi CEO Ben Muscat said yesterday.
He insisted that this was not a response to any cash-flow problem or in any way related to the economic downturn but simply a move intended to attract an equity injection that would raise the capital needed for the many projects on the horizon.
The shares will target a net dividend yield of four per cent, besides their potential for capital appreciation.
So far, €265 million have been spent by the Midi Consortium over the past 10 years. To help finance the last phases of the projects, the company hopes to raise €20 million from the public and another €10 million from its existing shareholders.
This will take the form of 44.4 million ordinary shares with an over-allotment option of a further 22.2 million, and a further 22.2 million shares to existing shareholders. (More information can be obtained from www.midimalta.com.) Addressing a press conference in which the share was announced, Midi chairman Albert Mizzi emphasised that the three prominent businessmen who recently stepped down from the consortium’s board would be raising their shareholding.
Maurice Mizzi, Charles Polidano and Zaren Vassallo simply vacated the board to make it more effective and efficient, by reducing the number of members from 11 to eight, Albert Mizzi insisted, dismissing any other explanation for the move. In fact, he pointed out, they were increasing their investment in the project.
Meanwhile, Mr Muscat gave an update of the 44-hectare project, saying that 251 of the 259 apartments put on the market have since been sold for a value of €150 million, despite being among the most expensive apartments on the island.
Thirty per cent were sold to foreigners and many of the tenants had already resold their apartments at a higher value.
Since January, despite the economic downturn, Midi had sold 27 apartments for almost €18 million and signed another 14 promise-of-sale agreements.
Mr Muscat also pointed out that The Point shopping mall was almost fully occupied with retail and catering outlets.
The next phase is to build two towers of apartments, a high-rise business centre and a 27-storey “hospitality” tower – the foundations for all of which have already been excavated.
Meanwhile, Mr Muscat said, Manoel Island is expected to be completely revived, with most of the space being dedicated to public parks and historic spaces.
On the other hand, another portion has been dedicated to developing a car-free Mediterranean marina village. It will include a 2,000-car underground car park, a marina with 300 yacht berths and another 30 for super yachts, and other facilities.
“This will be no concrete jungle,” he said, adding that the properties will all be low-rise, landscaped and occupy a smaller footprint than was actually permitted.
He said Midi was also dedicated to living up to its commitment with the government to rehabilitate Fort Manoel, Fort Tigné and Lazzaretto – for which €30 million have been allocated.