Lidl has been granted additional time to complete outstanding works at its Żebbuġ site after reaching a partial agreement with Central Business Centres plc (CBC), easing a dispute that had escalated last week.

CBC confirmed in a company announcement that it had held several meetings with the supermarket chain and agreed to extend the validity of a bank guarantee linked to the project. The extension gives Lidl additional time to complete works and hand over part of the property in line with the terms of a 2017 deed.

The dispute centres on a site that previously housed the Cortis Woodworks factory, where Lidl developed a supermarket that opened in April. As part of the original agreement, Lidl was required to construct and deliver an underground level to CBC, a sister company to the Cortis Group, by the third quarter of 2025.

Last week, CBC announced it was freezing funds deposited by Lidl as a works guarantee, citing delays in the delivery of the underground level. At the time, CBC said it intended to use the retained funds to complete the outstanding works itself and to offset damages arising from the delay.

In Monday’s statement, CBC said the bank guarantee had now been extended “for another period, giving ample time to complete the works and to hand over part of the Żebbuġ property to the Company in accordance with the deed.” As a result, CBC said it has halted further action against Lidl, at least for now.

Other unresolved matters related to the dispute will be referred to arbitration, the company said, indicating that while immediate tensions have eased, the broader disagreement has not been fully resolved.

Lidl has not issued a public comment on the matter. The retailer currently operates 11 supermarkets across Malta and Gozo and remains the country’s largest supermarket chain by market share.

CBC plc owns and manages a portfolio of commercial, warehousing and retail properties across Malta. In December, the company completed a €13.25 million bond issue, part of which was used to finalise the acquisition of the FXB building on Mdina Road in Qormi. Proceeds were also used to repay holders of a 2014 bond who opted not to roll over their investment and to settle €3 million in unsecured callable notes issued last year to finance the purchase of an office block in Mrieħel.

While the partial agreement offers Lidl temporary relief, the referral of outstanding issues to arbitration suggests the Żebbuġ dispute remains a live commercial matter with potential implications for both parties.