Malita Investments has announced that it has secured a sanction letter for financing tied to its affordable housing projects, marking a key step towards restarting works that had been suspended in recent months.
In a company announcement, the Government-owned entity said the sanction letter represents a binding commitment for financing, subject to certain conditions, including approvals from its institutional lenders.
The company explained that this stage goes beyond an indicative term sheet and provides a firmer basis for funding the completion of its affordable housing developments. It added that discussions with contractors are underway, with the aim of resuming works “in the near term”, pending the fulfilment of the required conditions.
Malita also reiterated that it has been implementing a restructuring plan intended to ensure the long-term financial sustainability of the project, noting that this process is ongoing.
The latest development follows a turbulent period for the company and its flagship housing project in Ħal Farruġ.
In November 2025, works on the site were suspended, with Malita stating at the time that the pause formed part of a “strategic reassessment” of the project. However, reports indicated that the halt came after the company failed to settle outstanding payments to contractors.
Court filings showed that Calibre Industries, part of the Cortis Group, had submitted judicial letters claiming more than €545,000 in unpaid dues. Vella Falzon Building Supplies later filed a separate claim exceeding €79,000, bringing the total amount sought by the two contractors to over €624,000.
Malita subsequently acknowledged that it was facing “liquidity constraints”, which also led it to suspend dividend payments, a move that surprised investors and contributed to a decline in its share price.
Governance changes
The financing update also comes after a series of governance and leadership changes at the company.
In January 2026, Malita appointed a new CEO and CFO, while Executive Chairman Marvin Gaerty transitioned to a non-executive role. These changes followed the earlier resignation of senior figures, including former Chairperson Marlene Mizzi, whose departure had been accompanied by allegations of political interference, claims the company has denied.
In subsequent communications to the market, Malita insisted it had always acted independently and in line with corporate governance principles, while also confirming it was exploring strategic and financing options to address its financial position.
The company had also ruled out the possibility of a Government bailout, opting instead for a broader strategic review of its operations and funding structure.
