A major German investor who relocated his international company to Malta three years ago thinks an urgent damage-control exercise is a must to restore the island’s reputation among financial practitioners abroad.
“We relocated to Malta in autumn of 2013 and are doing very well. However, we are now seriously worried, because we are already feeling an economic lull and the island’s reputation has been severely damaged,” said Sven von der Heyden, chairman and founder of the €550 million portfolio Von der Heyden Group Finance Plc.
“The new government must give priority to restoring Malta’s reputation abroad, because the damage has been done and confidence in the island’s reputation needs to be restored fast,” he said.
Mr von der Heyden said he never expected his group would go through the experience he had a few weeks ago when a reputable German bank turned down a request to open an account for the company, whose €25 million bond is publicly listed in Malta.
Malta is nowhere near to being a tax haven as portrayed in the German media
“We had a 20-year relationship with this big German bank, and we thought that opening a new account for a company whose bond was listed on the Malta Stock Exchange would be an easy exercise. When we were turned down, we were shocked and asked why. We were only told that was because the company was based in Malta,” he said.
Insisting Malta was nowhere near being a tax haven, as portrayed by the German media, he admitted that what was happening was damaging the Maltese economy. “I think the ball had been rolling for some three months, with certain German politicians spreading the message that Malta is some sort of Panama. This was not right. However, the negative effect is there, and Malta needs to get its act together to change such an impression,” he said.
“It’s very damaging and it’s hurting the Maltese economy, and it hurts me personally because we have had excellent experiences with the authorities, such as the MFSA and the Stock Exchange, and also with the professional service providers we work with.”
Insisting his group was in Malta to stay, Mr von der Heyden said there were clear signs that the Maltese economy was in for a rough ride if it did not clear its image abroad immediately.
“To us, there are clear signs of an economic bubble, especially in the real estate business, and we have been very careful over the past months on the type of investment we undertake,” he said.
“Some deals we have seen are just insane. Still, there is room for growth, particularly in the office rental segment, as a result of the financial services industry, including the iGaming industry, but we need to be cautious.”
“What’s important after the election is to have a clean-up, to restore Malta’s reputation and let the economic operators continue with the work they have been doing all along so successfully.
“I am confident that Malta will rise to the occasion once again,” Mr von der Heyden said.
Established in 1989, the Von der Heyden Group has just completed a real estate investment programme valued at more than €350 million. The group has major investments in Germany, Poland, Spain and now Malta, and plans to invest in Portugal.
Its acquisitions by the end of 2018 are projected to grow to €550 million. In March, it issued a €25 million bond in Malta.