GAP Developments, the company responsible for the Fort Cambridge residential development has announced an increased momentum of work on site but sales have slowed because of prevailing market conditions.
The Fort Cambridge area development, formerly occupied by the Holiday Inn Crowne Plaza Hotel in Tigne', involves the building of three 23-storey blocks consisting of 340 luxury apartments. The development will also include four levels of car park spaces at basement level.
The company in an interim financial statement to the Malta Stock Exchange, said the four underground parking levels have been completed. The construction of apartments at levels one and two of the south, west and east blocks commenced earlier this year and 30 apartments have been completed to shell form stage.
Mid-2011 is targeted for completion of the project.
"Market conditions remained unchanged from that prevailing in 2008, and as the economy contracted, sales did not maintain the same momentum as that experienced ever since the project was launched," the company said.
"After reporting date, as apartments reached shell form stage, and on certification by the architect, the company started receiving deposits of 20 percent of the sale price on the relevant preliminary agreements signed, thereby reflecting positively on the company's cash flow position," the company said.
"The increase in equity from €6 million to €16 million and the shareholders' loan agreements during the period January-June 2009, apart from the positive impact on the company's liquidity also improved considerably its debt/liquidity ratio. Furthermore, if the current shareholders' loans are taken into account, this ratio improves even further."
The results show a group loss before taxation of €240,979 (2008 - €107,263). As of June 30, the company had entered into 216 promise of sale agreements (unchanged from December) and is committed to hand over the apartments between December 21, 2011 and June 30, 2012.
The agreements are expected to generate sales amounting to around €99 million of which, as at June 30, €10 million were received by the company.