Midi to sell 11 Tigné commercial outlets in €10.2 million deal
Announcement comes days after Midi said it will sell Fort Tigné
MIDI is to sell 11 Tigné Point commercial outlets in Sliema and a building known as Unit T3 for €10.2 million and use the proceeds to redeem part of a bond which matures next year.
The announcement comes days after the company announced it will sell Fort Tigné to construction mogul Joseph Portelli for €2.5 million. He plans to turn that property into a hotel.
Midi said it will sell 11 commercial outlets, which are located under the Pjazza Blocks, and Unit T3 to Basel Capital Limited for the remaining period of a 99-year emphyteutical grant agreed with the government in June 2000.
The properties are currently leased out individually to third-party tenants except for one, which is being used as a sales office by the company. The current total annual rental income attributable to the properties amounts to €657,000.
The 11 properties are currently hypothecated in favour of the CSB Trustees & Fiduciaries Limited as security trustee for repayment of Midi’s €50 million bond which is due to mature in July 2026.
"It is intended that the net sale proceeds of the properties will be applied towards the redemption of the aforementioned bond," the company said.
MIDI, a private consortium granted a long-term concession on Manoel Island and Tigné Point in 2000, faced intense public pressure to abandon its mixed-use development plans in favor of converting the entire island into a public park.