Property development and hospitality company Juel Group plc on Tuesday announced that it has received approval from the Malta Financial Services Authority (MFSA) for the issue of €5 million in unsecured notes.

The issue was first announced last February.

In its latest announcement, the company added that all categories of investors can participate in the note issuance programme through the subscription for participation notes to be issued by the nominee and placement agent, MZ Investment Services Ltd under the terms and conditions of the applicable final terms. The notes, carrying a nominal value of €1,000 and redeemable at par on 18th April 2029, bear interest at the rate of 6.5 per cent per year.

In addition to this, Juel Group also released its prospectus for the notes issue. In the prospectus, it stated that around €3.5 million of the proceeds, which shall constitute the first tranche of the issue, is expected to amount to approximately €3.4 million net of expenses.

Around €1.8 million of the proceeds will be utilised for the group’s ongoing projects, including the development of a site in Marsascala.

In November 2022, Muscat Holdings II Limited, one of Juel Group’s subsidiaries, acquired three adjacent properties on Triq il-Ħut in Marsascala for the purpose of developing 25 residential units and 18 lock-up garages. On completion, it will consist of three maisonettes at ground floor level, while the remaining 22 apartments shall be spread over five floors. The garages will be located at the lower and upper basement levels. The residential units, garages, and commercial outlet are expected to raise €6.4 million in revenue, while total costs will come in at the region of €2.4 million.

Another €500,000 of the proceeds will be used to finance the group’s share of projects undertaken by subsidiary ACMUS Group Limited, primarily to part-finance a development in St Julian’s.

The St Julian’s property, located in Triq Ivo Muscat Azzopardi, was acquired by ACMUS Group Limited last December. It comprises a total superficial area of 1,634 square metres, and will be redeveloped into 24 residential units and 45 garages. The development is expected to generate approximately €19.6 million in revenue from the sale of the units and garages, while the total cost, including the acquisition, construction, and finishing costs, will amount to around €13.6 million.

The remaining €1.1 million shall be used to finance variations and other additional capital expenditure in relation to Juel Group’s Hyatt Centric Malta hotel in Swieqi.

Last year, the group raised €32 million through another bond issue, with much of those funds going towards the hotel.

The hotel is in the process of being constructed and developed, after the group acquired the site in 2022 for €18.5 million. The hotel shall feature 187 hotel rooms, spread over nine floors, of which 27 rooms are interconnected. Additionally, it will also have a spa, indoor and outdoor pool facilities, a restaurant, as well as other entertainment facilities. This will represent the second Hyatt-branded property in Malta.

Founded in 2016 and operating from Malta, Juel Group plc acts as the holding company of the group, which is involved in a range of sectors, including property development, residential letting, and hospitality. Adrian Muscat, who is Founding Member and Director of GAP Holdings Limited, is the majority shareholder of Juel Group.