Hotels, property development, Portomaso... everything George Fenech touches turns to gold. Joanna Ripard meets the head of Tumas Group.
Marvelling at the blue horizon from the 22nd floor of the Portomaso Tower - the only 22nd floor in the country - I was instructed that George Fenech would meet me at the Portomaso sales office at ground level and not in his office, after all. Pity.
But the man who built Malta`s tallest building does not have an ego to match. Despite reaching such dizzying highs in a remarkably few years, Mr Fenech has his feet firmly on the ground. For one thing, he rarely gives interviews. The Tumas Group which he heads after the sudden death of his father Tumas in 1999 may be ubiquitous, but Mr Fenech certainly isn`t.
When he is not working, Mr Fenech, now just over 50, prefers to spend time with his wife and two sons, or travel. For some peace and quiet he often retreats to his stables in Qormi. He declines invitations to numerous functions, and despite opening a casino and five hotels in recent years, he has never held an official inauguration.
"I like to keep a low profile," he says. "Ribbon-cutting is not for me. I loathe fanfare."
Business associates say he is shy, despite his booming voice and huge, jovial personality. That`s not to say he is embarrassed by his success, of which he is justifiably proud. The eldest of seven children, Mr Fenech is a chip of the old block.
Like his father, "my old man" as he affectionately calls him, Mr Fenech has no academic qualifications beyond GCEs, but he has undoubtedly inherited his father`s foresight, intuition and ingenuity. Since he was gradually handed his half of the reins in the late Sixties by his father, George has never looked back.
Tumas Fenech retired from the police force in 1968 but had already been buying and selling property for two years, making a name for himself in Qormi, his hometown.
"He was a wheeler and dealer, I suppose," Mr Fenech recalls. "I have never met anybody as capable as he was, anywhere. He was a genius when it came to property. He had an incredible vision and he truly felt the pulse of the property market."
Mr Fenech himself left the Lyceum in 1968, itching to get down to business. His father gave him the Armada nightclub to run. His mother Guza strongly disapproved, arguing the place would be a bad influence on the young man.
Tumas Fenech relented and gave his son another responsibility - a new showroom in Qormi for domestic applicances and top quality imported furniture.
By 1976, Mr Fenech Jnr dipped his toes in the tourist industry and acquired some self-catering apartments. He later bought a small hotel, the Cartwheel.
The industry took off in 1979 and the Fenechs bought the Topaz Aparthotel. But the sector took a severe nosedive between 1981 and 1983, and Fenech decided it was time to introduce a new concept to Malta - timeshare. It turned out to a be an astute move.
The industry may have fallen on hard times but the Fenechs saw it as an opportunity. They bought the Halland Hotel in 1984 as a management agreement with Air Malta was about to expire. In 1985 the Dolmen Hotel was on the verge of bankruptcy, but father and son took it on.
Tumas Fenech`s pride and joy came when he clinched a deal for the old Hilton in 1986.
"The original Hilton was the old man`s baby," Mr Fenech recalls. "We had several offers for it but it was such a huge achievement for him. He had tremendous respect for the Hilton brand. I remember he had barely stepped inside when he signed the deal. He was very discreet. He pretended he was a contractor who needed to check on the state of the waterproofing on the roof. Dr Mario Felice was with him. He saw the grounds from up there. He was convinced."
The Fenechs later bought and rebuilt the Mgarr Hotel overlooking Gozo`s main port in 1990, adding yet another property to the largest portfolio ever put together by a single group in the country, providing nearly 3,000 hotel beds.
In just over three decades, the Tumas Group has amassed properties and over 20 companies ranging from retailing, real estate, tourism, to construction, car importation and distribution, gaming and executive jet transport, in all worth over Lm100 million with around 1,200 staff on the payroll.
Over time, George`s siblings joined the group and now run the various divisions within the Group.
Anthony Fenech now heads Easysell - Kia (Malta) Ltd, importers and distributors of Kia and Asia Motors. Manuel and Angelo Fenech run the construction division. Raymond Fenech has also followed in his father`s footsteps and manages the estate division. One of Tumas` two daughters, Carmen, runs the Halland Hotel.
The pinnacle of George Fenech`s own career is undoubtedly Portomaso, the most ambitious project ever undertaken by a private entrepreneur in Malta - the multi-million project is arguably the country`s most prestigious.
He admits that several disagreements with the authorities over the redevelopment of the land of the old Hilton led to Portomaso being developed as it stands today. Mr Fenech is to be credited with initiating and completing the project, albeit with the help of top-notch expertise.
"When you have land at your disposal, you study the possibilities. The `Tower Road concept`, that is building mini high-rises, is dead. It is a concept I dislike immensely," he points out. "I believe that you do not buy property but a lifestyle. Few people want to live in an apartment per se today. They want security, facilities and an address to be proud of."
At the peak of construction in 1997/1998, there were close to 1,500 workmen and other employees on site. That besides personnel involved in the manufacture of furnishings and fittings. Apart from handing a struggling construction industry a lifeline during a difficult period, the multiplier effect the project has generated is enormous.
Portomaso scored many firsts - the most striking probably being the 23-storey business tower, the landmark that defines the 31-acre area for its innovation, prestige, and luxury. Portomaso has also been recognised overseas and has won several coveted awards.
The reconstructed Hilton, which opened in February 2000, is now flanked by the tower and a unique cluster of luxury apartments and penthouses overlooking a 115-berth fully occupied marina. The project also encompasses numerous restaurants, a health club and sprawling, landscaped gardens and has provided nearly 600 new job opportunities.
Of the 320 apartments and penthouses completed in the first two phases, 200 have been sold. Some properties in the third phase, construction of which is to be completed by next July, have also been sold. Apartment and penthouse sales so far total Lm37 million of which Lm27 million originated from sales to foreign buyers.
Forty per cent of buyers are Maltese, beating the accountants` conservative projections of 18 per cent Maltese ownership. Portomaso boasts residents from 27 countries, mostly the UK and the Netherlands. Other residents include Swiss and Germans.
In 2001 Portomaso alone accounted for 17 per cent of total property sales in Malta to foreign buyers and 48 per cent in terms of value. Foreigners acquired property at Portomaso at an average of Lm182,000 each last year, almost four times as much as the usual average spent by foreign buyers, which stands at around Lm46,000.
The Convention Centre which is flanked by the Portomaso Tower and the Hilton, is close to completion and will host its first international conference for 1,500 participants from a medicinal company next February. The state-of-the-art centre, which houses every possible facility, includes a show area of over 1,000 square metres and is being marketed by Hilton International.
The 4,000 square metres of office space within the tower which were put up for sale have been sold. George Fenech decided to retain the remaining 5,000 square metres for leasing purposes.
The sales office has an amusing anecdote: apparently a Feng Shui expert was called in by a foreign company before it signed on the dotted line. He was instantly convinced there was perfect harmony on the premises. Asked how it looked by the buyer, the expert exclaimed: "You cannot help but make money here!"
Now that Portomaso is nearly done and dusted, Mr Fenech has no intention of sitting on his laurels. But after passing such a significant milestone in business, what could possibly be next?
"I have probably done more than I should now," he reflects, quite half-heartedly, before adding: "I am looking at opportunities in property overseas. But I do have two interesting residential projects in the pipeline, one in the north of the island and another in the south. They will be built in today`s style, with good landscaping, open areas and a few traditional elements. As I told you, I do not like building boxes."
Another generation is waiting in the wings, of course. Besides his two sons, Juergen and Franco, both in their early 20s, there are 11 nephews and nieces who will continue the Tumas Fenech legacy as George Fenech has done.
Juergen and Franco are slowly being shown the ropes as Tumas had done with his own children three decades ago. And one niece, who recently obtained an MBA, has joined the Group as an accountant.
Acumen is an important quality the young Fenechs need to possess to keep the Tumas Group flag flying high and to preserve the Fenech family reputation.
But ask George Fenech which leaf he took from his father`s book and there is no hesitation: "He was a man of his word. I kept that and I am very proud of it. The old man believed that once you shook hands, you were never, ever to go back on your word. Even if the next person to come along offers more. You can find your way out of a contract. Always. But he believed - and I believe - that that`s not the way to do business."
The old man probably smiled.