PG Group, the publicly listed company that operates the Pavi and Pama shopping complexes, as well as represents retail giant Zara on the domestic market, has announced that its purchase of a site in close proximity to Pavi in Qormi, has been finalised.

The property in question is owned by the Government, leased to Nylon Knitting Limited in 1963 for a period of 150 years. PG Group’s purchase, valued at €7 million, thus relates to the remaining 90 years of the temporary emphyteusis, which is subject to an annual ground rent of €1,048.22).

The agreement specifically refers to a divided portion of land forming part of the ground known as ‘ta’ L-Istabar’, in the limits of Qormi, in turn currently forming part of the site named ‘Nylon Knitting’.

PG plc stated that the transaction is intended to strengthen the asset base of the group and that "no business is currently being carried on by, or through the use of, the net assets the subject of the transaction".

The group has long been telling shareholders that it is looking for such investments to capitalise on its strong liquidity and low debt ratio. 

Earlier this month, PG Group reported a dip in pre-tax profits as higher costs bit into operations.