The Vassallo Group experienced a watershed moment at the end of 2021. Nazzareno Vassallo – who had masterminded its growth from a simple construction company into one of Malta’s leading business organisations with operations in diverse sectors – decided to step down upon reaching his 70th birthday and hand over the reins to the next generation.

His eldest son, Pio, had already been serving as Group CEO for several years but now has the added responsibility to ensure the Group can continue to thrive without any formal input from its founder.

Pio is accustomed to challenges. And, as an accomplished triathlete who believes he gets his best ideas when either running or furiously bashing the pedals of his bicycle, this is one he accepts with gusto.

“I used to think that being a leader was about being loud. But it’s not. The best CEOs are those who are servant leaders. This means being accessible, keeping your feet on the ground and trying to inspire others to be the best version of themselves.

“The trick is to identify a person’s strengths because weaknesses are always apparent. I’m a great believer in trying to create a caring environment where colleagues can develop their skills. And as a leader, one needs to have a positive outlook, be a good listener and remain open to ideas while at the same time being resilient and determined.”

Pio cut his teeth in the dusty surrounds of construction sites that were once the cornerstone of the company’s success; however, the Group is today a major player in several key sectors – including care, hospitality, catering, education and, more recently, sport – and it is this variety that excites him.

“We adopt a strong collegiate approach to the business. Each arm has its own CEO and I chair the forum that brings them together. This gives us the opportunity to share knowledge and discuss ideas in the continual push to move forward.”

The Group is one of the largest private employers in Malta, with around 2,000 staff members, and each individual is important to Pio. “HR is always a big challenge because it has become more and more difficult to find the right people, especially since many third-country nationals left during the pandemic, but I work closely with our Chief People Officer because our colleagues are, and will remain, our most important asset. Any success we achieve is down to them.”

Century Ride at Casa Arkati

The coronavirus pandemic hasn’t been the only issue to affect businesses. Russia’s invasion of Ukraine has placed huge pressures on availability of supplies and costs.

“The effect of the war has been worse than the pandemic. The price of steel has increased by 66 per and suddenly we can’t get our hands on certain essentials. This is causing problems with deliverables and is a situation I have to monitor on a daily basis. We have good rapport with suppliers and try to find solutions, but I also find myself acting as an intermediary between our own companies when one supplies the other!

“We rode the pandemic well thanks to our diverse structure, but I hope the current crisis will not be prolonged because the hospitality industry in particular needs to return to normality. From a business perspective, we need to reduce bureaucracy and create right climate for investors as well as offering incentives for environmental initiatives. At the same time, we must not lose sight of the fact that Malta is a tourist destination.”

Indeed, hospitality remains a big focus for the Group. Its new Lands End Hotel in Sliema is due to open in the coming weeks, joining a portfolio that includes The George and Number 11 Urban Hotel in St Julian’s, the Bugibba Hotel as well as La Branda Riviera and Spa in Mellieha.

The Vassallo Group has also become the island’s leading provider of care for the elderly since opening its first residence in 1992 and continues to find new niches, recently spreading its wings into mental health and providing facilities for children who come from difficult social backgrounds. Education has also been an important pillar, with Learning Works providing a number of vocational courses within the care sector, construction and management.

The Group’s latest project, the Mediterranean College of Sport, is very much Pio’s baby. Located on the site of the St Aloysius College Sports Complex in Birkirkara, the college will include a fully refurbished pavilion, an outdoor seven-a-side football pitch, a swimming pool, onsite accommodation facilities for 63 beds, new classrooms for secondary school and sixth form, a childcare centre, administration offices and a two-storey car park.

The College has also secured the commitment of leading sports scientists — part of the project will see the creation of Malta’s first state-of-the-art sports science and research centre — consultants and a sports psychologist to ensure future students will have every chance and support to excel in their field.

Property and construction have not been left behind either, with the Group completing the first two residential blocks of the new Campus Hub at The University of Malta. Commercial spaces and new medical school will follow. “The objective is to create a new destination for students,” Pio says, “since the University will now be able to offer a proper campus environment.”

Meanwhile, it has just completed a new business park in Burmarrad and invested in an overlying 1.3MW solar plant that can generate enough electricity to power all the households in Burmarrad — through its subsidiary Powerezi.

The Group has tended to buy property to keep rather than to sell and, while this is not a hard and fast rule, Pio certainly has no desire to embark on controversial projects. “We see ourselves as developers with a purpose. We like to restore buildings and find purposeful uses for them and we’re also looking into making our college of sport and Santa Rosa in Mosta zero emissions buildings.

“Obviously, a sustainable business must make a profit and we exercise a high degree of corporate governance, but it is the community aspect that really matters to us. I gain great satisfaction, for example, when someone tells their parent is happy at one of our residences. We want to have a positive impact on society and make a difference.”

As ever with Pio, the next physical challenge is never far away. He has just completed a bike ride, during which he stopped at all of the Group’s care facilities around the island as part of The International Day of Sports for Development and Peace, and on May 1 will be taking part in the Life Challenge – a gruelling 1,000km ride around Sicily to raise money for the Alive Charity Foundation’s efforts to promote cancer research.

“You can apply so many principles from sport to business because it teaches you how to celebrate victories and deal with losses. But ultimately it’s all about teamwork.”