A group of commercial properties at Tigné Point is set to change hands following the signing of promise of sale agreements valued at €10.2 million, in a transaction that will see the proceeds directed towards the redemption of a €50 million bond maturing in July 2026.

The agreements, signed on 19 December 2025, cover eleven commercial premises underlying the Pjazza Blocks, as well as a separate building known as Unit T3, all located at Tigné Point, Sliema. The sale involves the transfer of the remaining term of a 99-year temporary emphyteusis that commenced in June 2000.

The properties form part of a wider land concession originally granted by the Government of Malta and are subject to a proportional share of the annual ground rent payable under the original emphyteutical deed, together with all related rights, obligations and restrictions.

The agreed consideration of €10.2 million will be paid in line with the terms of the promise of sale agreements, with the final settlement due upon the execution of the final deed. The transaction remains subject to a number of conditions precedent, including due diligence and regulatory clearances. Should these conditions not be met, the agreements will lapse with no obligation on either party to proceed.

The agreements are valid until 30 April 2026.

At present, ten of the eleven commercial properties are leased to third-party tenants, with one unit retained as a sales office. The total annual rental income generated by the portfolio stands at €657,000. Upon completion of the sale, the properties will be removed from the group’s asset base, and the associated rental income will cease.

Importantly for bondholders, the properties are currently hypothecated as security for the company’s €50 million bond due to mature in July 2026. The company has confirmed that the net proceeds from the sale are intended to be applied directly towards the bond’s redemption, strengthening its position ahead of the maturity date.

The transaction qualifies as a Class 1 transaction under the Capital Markets Rules. A notary has been appointed to register the agreements with the Commissioner for Revenue, and specific disclosure exemptions under the rules have been formally noted as not applicable to this deal.

The sale represents a strategic reshaping of the group’s property portfolio, prioritising balance sheet strength and bond repayment over recurring rental income, as it prepares for key refinancing milestones in 2026.