Midi has sold a 2,000m2 site at Tigné Point to a joint venture for €11.7 million. The joint venture, Mid Knight Holdings Ltd, is a 50/50 partnership between a fully-owned subsidiary of Midi, T14 Investments, and Benny Holdings, owned by international entrepreneur Mark Weingard.
Midi said in a company announcement that once the business centre is completed, it would contemplate selling its shareholding in Mid Knight. The business centre will offer 12,500m2 of rentable office space, with a catering proposition on the ground floor overlooking the piazza. A contractor for the project is expected to be appointed soon.
Midi said the development requires long-term capital resources and was best undertaken jointly with a strategic partner. It added that the money will be used to meet its working capital requirements.
The development company had found itself under considerable financial pressure after permit delays at Tigné Point, which were costing it €10,000 a day in servicing of its €40 million bond alone. Its gearing had reached 76 per cent but after the sale of the mall, CEO Luke Coppini told The Business Observer some weeks ago that the company had managed to knock €48 million off its borrowings. Its gearing had dropped to 45 per cent in 2013.
“The new business centre at Tigné Point has all the makings of a world-class development. Set within an outstanding environment, this iconic building is set to tap into the growing demand for high quality, centrally located office accommodation that Malta now commands,” Weingard said.
“The ability to add a top-notch commercial investment to my Malta portfolio was too good an opportunity to miss.”
After years travelling the world, the millionaire philanthropist adopted Malta as his home 18 months ago and a week ago said he was looking to invest heavily in Valletta , bringing over a three-Michelin-star chef for a 100-day gastronomic experience at the Civil Service Sports Club; a high-end luxury hotel on Barbara Bastions; and the world’s first gastro hotel in St Paul Street planned for 2018.
The business centre is part of the Midi’s 2000 concession from the government and the transfer require government consent, which has been granted, Coppini confirmed.