Industrial Motors Limited (IML), a subsidiary of Mizzi Organisation Limited, has decided to scrap the plans to develop a petrol station as part of its Ħofra Project.

The organisation, which is one of the largest private enterprises in Malta and holds a broad portfolio of business interests, including in property, hospitality, automotive, beverage, insurance, importation, and retail, will be using just over half of the funds to refinance existing borrowings.

The project considered the development of a site located in Blata l-Bajda, owned by IML. It was planned to be transformed into a petrol station, underground facilities, and a showroom to be occupied by the automotive division of the Mizzi Organisation, as well as a drive-through restaurant to be leased to a third-party operator.

In September 2021, the company issued a €45 million 3.65 per cent unsecured bonds, set to mature in 2031. While €3 million was allocated to partially finance the refurbishment of Arkadia Complex in Gozo, €5 million was set to partially finance the project to transform the 3,281 sqm site.

Specifically, €4.3 million of the bonds were intended to finance the project while €700,000 was used to part finance the repayment of an intra-group loan agreement advanced by Mizzi Organisation to Industrial Motors. 

Since the start of the project, IML has encountered numerous delays in its development of the project. So far it has completed the demolition of the former petrol station and excavation works in the underlying part of the site.

“Furthermore, in light of recent developments in the local and global automotive industry, predominantly driven by the growing demand in electric vehicles and resultant shift in consumer behaviour, IML has reassessed the viability of the development and operation of a petrol station at the site,” the company shared.

Upon reflection and in response to evolving market realities, the company has decided to scrap the idea of a petrol station. Additionally, it has opted to reconsider the use of the Blata l-Bajda site, aiming to explore more profitable and relevant commercial opportunities.