Agora Estates plc has announced that it will be issuing its first tranche of bonds, worth €12 million and carrying a coupon rate of 5.8 per cent, with a maturity date in 2036.
The issue is the first tranche in a wider €21 million bond issuance programme that received regulatory approval from the Malta Financial Services Authority earlier this month.
The principal activity of the group is to identify, acquire and develop immovable property, whether residential or commercial. The primary objective is to hold an investment property portfolio for rental investment and capital appreciation, whilst also developing property for resale.
Agora Estates has a property portfolio of one residential and 10 commercial properties. Some are already leased out, while others are being developed or refurbished for eventual leasing.
Sponsored by Jesmond Mizzi Financial Advisors Ltd, the bonds are set to mature on 1st March 2036. Interest is payable annually in arrears, on 1st March for every year between 2025 and 2036.
Much of the proceeds will be used to refinance existing loans.
Up to €3 milllion will be used to settle a loan from BOV, while up to €2.2 million will be used to settle a MeDirect credit facility. These loans were used to finance the acquisition of the Agora Retail Centre and the acquisition and conversion of the Agora Business Centre, respectively.
Another €3.38 million will be used to settle private debt.
Of the remainder, €500,000 will be granted on loan to a subsidiary, J Zammit Estates, to cover the refurbishment expenses for the Agora Retail Centre, while the other €2.4 million will be used as general corporate funding.
Agora Estates plc is owned by Zammit Holdings, of which the ultimate beneficiary is James Zammit. Agora Estates is the holding company and financial arm of Mr Zammit’s property interests, which extend into development and commercial and residential rental properties.
The group’s commercial property mainly comprises retail outlets in the lower floors and office spaces on the upper floors. These are normally rented out to third parties.
The current market value of the properties held by the group is of approximately €46.5 million.
Properties include the aforementioned Agora Business Centre, on Msida’s Valley Road, which consists of four floors, an intermediate floor and a receded floor, and the Agora Retail Centre (formerly known as the Express Aluminium Showroom) on Mdina Road, Żebbuġ.
Another property owned by Agora Estates is Aries House, also on Mdina Road, Żebbuġ, which houses a showroom at ground level, VRT station at basement level and offices at first and second floor levels.
Other properties that are marked “commercial property held for investment” include a 2,155 sqm plot in Żebbuġ, earmarked to be developed into De Rohan Business Centre, a car showroom in Marsa (J C Car Sales), and another 1,611 sqm site developed into warehouse and offices in the limits of Żebbuġ.
There is no minimum subscription amount for the bonds.
The bonds will be available for subscription by all categories of investors subject to a minimum application amount of €5,000 per underlying investor. The Bond Issue has been fully placed with the Authorised Financial Intermediaries.
Priority in allocation shall be given to noteholders participating in the private debt. The priority in allocation to these noteholders shall be limited up to the holding in the private debt.
The issuer is putting up as security Agora Business Centre and Agora Retail Centre.
More information about the bond issue can be found in the base prospectus and the final terms.
