CF Developers Ltd has reached promise of sale agreements to purchase and acquire two properties in Mosta and Qawra with the Sant family and Marvin Holiday Complex Ltd, respectively.
The Mosta property, located at 192/194, Triq l-Isperanza, consists of a 1,693 sqm garage complex, which shall be sold free and unencumbered by members of the Sant family for €4.8 million. 10 per cent of the figure was paid on the promise of sale agreement on 13th January to the notary and to be held by such notary until final deed of sale as a deposit.
The remaining balance will be paid on the final deed of sale.
The promise of sale agreement is subject to a number of conditions precedent, including the issuance of Planning Authority permits for the redevelopment of the site, and which need to be satisfied prior to the execution of a final deed of sale and transfer of the property. CF Developers Ltd announced that the promise of sale agreement shall remain valid and effective up to 13th July 2024.
CF Developers Ltd also reached a promise of sale agreement with Mavina, a subsidiary of Hal Mann Vella Group plc, to purchase and acquire a building named Mavina Holiday Complex in Triq il-Fliegu, Qawra, limits of St Paul’s Bay. The agreement includes the purchase of its inclusive subsoil and airspace.
The property shall also be sold free and encumbered, apart from it being subject, in part, to an annual, perpetual and revisable groundrent of five per cent.
The two companies agreed on €7 million as consideration for the sale and acquisition of the property, payable according to the terms of the promise of sale agreement, while the final payment will be made on the final deed of sale. This agreement, as is the case with the Mosta property one, is subject to the issuance of Planning Authority permits for its redevelopment and need to be satisfied before the execution of the final deed of sale and transfer. Hal Mann Vella Group stated that should these conditions not be met, the promise of sale agreement shall be “lapse and neither party will be bound to execute the final deed of sale”.
The promise of sale agreement shall remain valid and effective up to 31st August 2024.
The Qawra property is currently leased out to third party tenants, yet once the final deed of sale is conducted, it will no longer form part of Hal Mann Vella Group’s portfolio. As a result, as soon as the current tenant vacates the property, no further rental income will be generated to the company. Proceeds from the disposal of the property are expected to go towards reducing the company and its subsidiaries’ debt.
CF Developers is a subsidiary of CF Estates Ltd, a real estate company in which Joseph Portelli is majority shareholder, owning 30 per cent of it. Francis Agius, Clifton Cassar, Duncan Micallef, and Stephen Falzon own 17.5 per cent each. Late last year, CF Estates Ltd issued €30 million five per cent secured bonds in an attempt to refinance bank loans which were utilised to support development costs, including those of its CF Business Centre in St Julian’s.