Central Business Centres plc, the company that owns the Savoy Shopping Complex in Valletta and the LIDL complex in Zebbug, has signed a promise of sale agreement to acquire the FXB Building in Qormi for €5.5 million.
The five-storey property, located on the corner of Guzè Duca Street and Mdina Road, opposite Ta’ Ganza, spans around 1,100 square metres.
The company plans to partly finance the purchase through a €30 million bond issue, which was announced last week.
Under the terms set out in the base prospectus, when the sale of the Qormi property is finalised, CBC will pay €5.4 million as the full purchase price. In addition, the company expects to spend around €500,000 on fees and other costs related to the transaction. This means the total estimated cost of acquiring the property will be about €6 million.
CBC said that it is keeping open the option of developing the property, which “may carry development potential,” adding that the final deed is expected to be signed by the end of 2025.
How CBC plans to use the funds
The first tranche of its €30 million bond issue, consists of €13.25 million in 5.7 per cent unsecured bonds, due 2030 to 2035, with further details found in its Final Terms document. The proceeds from Tranche 1 are expected to total approximately €12.98 million after estimated expenses of €270,000.
Apart from the above-mentioned property acquisition, CBC plans to use the funds to repay the 2014 Existing Bonds with around €2.97 million.
€3.25 million will be used to repay the bonds originally set for redemption on 31st August 2025, issued last year under an Offering Document dated 13th August 2024, later granted an extension till February 2026.
CBC had asked investors for more time to repay the debt, explaining that it is “actively pursuing” a long-term financing solution to cover recent property acquisitions, its existing debts, and the promise-of-sale agreement signed for the FXB property.
Another €860,000 will be used for general corporate funding expenses.
Established in 2014, CBC invests in commercial property and generates income through rental agreements. Its portfolio includes six commercial properties such as the Savoy Arcade in Valletta, a Żebbuġ property housing a Lidl supermarket, and business centres in Gudja, St Julian’s, Valletta, Żebbuġ, and Mrieħel.
