MIDI plc, the developer of Tigné Point and Manoel Island, is “confident” that the outcome of talks it is holding with Government for a renegotiation of the contract it holds for the sites will “enable the successful completion of the project.”
One main subject of the talks is the request for an extension to the original deadline of 31st March 2023. The company is pointing to provisions within the deed that provide for an extension to the completion date in the event of delays arising from events or circumstances outside its control.
MIDI argues that it “experienced a number of delays associated with the issue of building permits and encountered site-related conditions which were not foreseen at the point in time when the emphyteutical concession was granted.”
Obtaining building permits has proven difficult, with dogged campaigners opposed to the site’s development mounting significant legal challenges against MIDI’s plans.
The discovery of archaeological remains on the Manoel Island site also led to a revision of its proposed masterplan, resulting in a reduction of development volumes from 127,000sqm to 95,000sqm.
“In the light of these circumstances and the contractual obligations emanating from the deed, the group is currently actively engaged in discussions on this matter with the Government and on the basis of the ongoing discussions, the Board is confident that an outcome which will enable the successful completion of the project will be achieved,” it said.
The Planning Authority (PA) is expected to deliver a decision regarding the first full permit application for the development of the Manoel Island project in the second half of 2024, according to the developer.
In its interim financial statements, MIDI, the developer of Tigné Point and Manoel Island, explained that a Heritage Impact Assessment (HIA) requested by the PA is now complete and has been submitted to the Superintendence of Cultural Heritage (SCH).
The HIA was requested due to the project’s potential impact on the status of Valletta, across the Marsamxett Harbour, as a UNESCO World Heritage Site. MIDI said it is confident that the proposed development of Manoel Island has no impact on this status, noting that the SCH, after having consulted the National World Heritage Technical Committee, had not objected to the development application when initially consulted by the PA.
After years of looking for an outside investor, MIDI in December 2021 signed a non-binding memorandum of understanding with AC Enterprises Ltd, led by Anton Camilleri. AC Enterprises is the company behind the major Villa Rosa development in St Julian’s.
It reported that “although significant progress has been registered no transaction has been concluded yet” with AC Enterprises.
Interim results
MIDI plc registered a consolidated loss amounting to €1.02 million during the period ended 30th June 2024.
It said that this financial performance “reflect the cyclical nature of the group’s property development business.”
It added that although it has successfully launched the apartments of its latest residential development at Tigné Point (known as Q3 – Fortress Gardens) the sale of these residential units will only be recognised once the final deeds of sale are entered into with the respective buyers.
MIDI stated that the market’s response to the Q3 – Fortress Gardens building has been “very positive” with more than 80 per cent of the apartments now subject to a promise of sale agreement.
Development works on the Q3 – Fortress Gardens apartment block commenced in the second quarter of 2022. The civil works are now complete with finishing and mechanical, electrical, plumbing and façade works progressing as scheduled.
Delivery of these apartments is envisaged for the second half of 2025.
Meanwhile, revenues within the property and rental management segment amounted to €1.49 million (2023: €1.41 million).
