The Point, the shopping mall at Sliema’s Tigné Point, expects to see continued business growth from the increased footfall generated by significant development in its environs, chief executive officer Edwin Borg says as the mall prepares to go public.
Record tourist arrivals have turned the Sliema summer into another Christmas
All 50 retail units across The Point’s 14,349 square metres are currently occupied – Mr Borg says only six units have changed hands since the mall opened in March 2010, and even then, the units were snapped up by tenants already occupying other units. Leases run for between 15 and 20 years.
“The business will grow as Midi plc, the developer, completes Tigné Point and, more specifically, the business centre,” Mr Borg told The Times Business this week. “Other developments in the vicinity, like Fort Cambridge, are coming on stream. The Point will see growth from the added footfall from all this new activity.”
Subscriptions to the initial public offering of Tigné Mall plc open on Monday as The Point’s owner and operator moves to list on the Malta Stock Exchange. Developer Midi plc is to sell its entire shareholding in the property.
The €28.2 million combined offering involves an offer by Midi plc and Tigné Contracting Ltd of 42.4 million ordinary shares (of which 20 million ordinary shares will be pre-allocated to MSV Life plc) and a new issue of 14 million ordinary shares by Tigné Mall plc. All ordinary shares have a nominal value of 50c and are being offered at 50c. Shares are expected to be listed on the MSE’s Official List in early May.
Mr Borg explains it was always Midi’s intention to move on after completing the shopping centre.
“Midi is a developer,” he said. “Once it completes a particular phase, be it residential or commercial, any developer typically sells and moves on to build the next phase. Midi is not an operator of shopping malls and it was never planned for it to hold this asset going forward. This is the reason Midi is selling all its shareholding and the mall is making a new issue.”
The Point, which is geared towards fashion retailing and catering, has enjoyed a good run in its short time in operation. Mr Borg attributes its success to its tenants’ ability to read consumer demand and respond with a balanced mix. That mix includes ready-to-wear designer labels, high street brands, the 2,600-square metre Debenhams department store, and an array of food and beverage establishments and offerings.
“The Point has performed well at a time when Eurostat figures show the local retail market has shrunk by around nine per cent between 2008 and the end of 2012,” the chief executive pointed out. “In this context, many brands which are favourites with consumers established a presence at The Point and did well. This was extremely encouraging for us. We have never had to advertise vacant units – the handful that became available was immediately taken up by existing tenants.”
Tenants’ performance has also been enhanced by a marked shift in retail trends. Record tourist arrivals in recent years have turned the Sliema summer into another Christmas, so that retailers are able to look forward to two lucrative seasons in one year. July to September is now equally important to November and December, Mr Borg pointed out.
Asked about the competition presented by the Plaza on Bisazza Street and Tower Road, Mr Borg said the two shopping centres were complementary to each other – and the reality has reflected the scenario Tigné Mall had envisaged when it originally embarked on the ambitious project.
Mr Borg stressed the advent of The Point had turned Sliema into the shopping destination of choice.
“We have captured a slice of the market and Plaza has grown in parallel. The entire Sliema district has grown as a retail catchment area thanks to the robust retail offering across the town,” Mr Borg said.