Malta Properties Company plc (MPC) on Tuesday announced that it has concluded the sale of the Birkirkara Old Exchange property to Excel Investments Ltd for €8 million.
This comes after a promise of sale agreement was reached between Excel Investments and MPC’s subsidiary BKE Property Company Ltd (BKE) last year for the sale to take place. The complex is situated in Salvu Psaila Street, corner with Borg Street and Rabbits Street in the area known as Tal-Brieqex at Birkirkara. The sale includes the complex, along with “all the buildings and other improvements all without official number, as well as the outside areas and with all its rights and appurtenances including its overlying airspace and its underlying terrain”.
BKE has now executed the final deed of sale in respect of the property, through which it sold and transferred it to Excel Investments, which accepted and purchased it for a total fee of €8 million, 10 per cent (€800,000) of which was paid upon the execution of the promise of sale agreement. The remaining €7.2 million has been paid in full and final settlement of the consideration upon the final deed of sale through bank financing.
MPC added that the property “no longer forms part" of its portfolio and thus there will no longer be any rental income received from it. The company still retains ownership of two adjacent properties in Birkirkara that are leased out to GO plc and Epic Communications Ltd respectively. The Birkirkara Old Exchange was vacated by GO in the second quarter of 2022, and is set to be redeveloped into a residential and commercial building by Excel Investments.
The proceeds from the sale are expected to go towards “funding MPC’s development projects or any acquisition opportunities,” it said.
The company that has bought the site, Excel Investments, is owned by three Gozitan businessmen: Joseph Portelli, known for J Portelli Projects, the firm behind Mercury House in St Julian’s, Mark Agius, known as Ta’ Dirjanu for his supermarket chain, and Daniel Refalo.
MPC owns a number of office buildings and industrial properties that are leased out to blue chip tenants with secure, long duration leases. Apart from GO and Epic, its tenants also include Planning Authority and HSBC Global Services, among others.