PG plc announced on Monday that it has entered into agreement with Nylon Knitting Limited over the acquisition of the remaining years on the 'utile dominium' tied to the latter's premises and site in Qormi for the price of €7 million.

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’. The site is in close proximity of PAVI.

This deal sees Nylon Knitting Limited sell the remaining 90 years of the temporary utile dominium tied to this property. Its original utile dominium period was that of 150 years and had commenced back in 1963. The transfer to PG plc will start as of January 2023.

Utile dominium refers to the tenant's right to use, make improvements to, or profit from, and to keep the income or profit derived from the property being transferred under such an agreement.

The site in question forms part of the property granted by temporary emphyteusis by the Government of Malta to Nylon Knitting Limited in virtue of a public deed affected on 3rd June 1963. As per the original agreement, this site is subject to an annual and perpetual temporary ground-rent of €1,048.22.

The Property is otherwise free and unencumbered.

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 consideration price for the acquisition is of €7 million, of which 10 per cent has been paid as a deposit while the remaining balance will be settled at the final deed of sale.

The Agreement is subject to the relevant searches being carried out and will remain valid and effective until 30th January 2023.