The QLZH Group, best known for its real estate brands QuickLets and Zanzi Homes, is seeking to fund its growing ambitions through a bond issue expected to generate approximately €11.67 million in net proceeds.
The capital raised will primarily go towards financing the acquisition and development of real estate assets, with a portion allocated to the group’s general corporate purposes.
The company has now published the Final Terms for its latest offering under its €12 million secured callable bond programme. The newly announced tranche, up to €5.2 million in 5.5 per cent secured callable bonds, designated as Series 2025-1 Tranche 2, is open to all categories of investors, including the general public, through authorised intermediaries.
The Final Terms, dated 4th December 2025, are available on the company’s website and must be read in conjunction with the Base Prospectus.
Net proceeds from this tranche are expected to amount to approximately €6.54 million, after issuance expenses.
Founded in 2014 by brothers Stephen and Michael Mercieca, QLZH has evolved from a single letting office in Ibraġġ into one of Malta’s largest real estate franchise networks. Its sales arm, Zanzi Homes, launched in 2016, further broadened the group’s reach across the property market.
The new bond proceeds will be channelled through the group’s development arm, Merci Developments, which will use the capital to acquire and develop key residential sites and support general corporate funding needs.
Use of proceeds:
- Up to €5,000,000 for the acquisition and development of designated real estate sites, including the Pembroke and Buġibba projects
- Up to €1,537,500 for general corporate purposes
QLZH’s latest documentation highlights two primary development projects that will be funded by the bond proceeds: one in Pembroke and another in Buġibba. Both projects hold Planning Authority–approved, executable permits.
Pembroke project: Five-storey residential block
The Pembroke development will consist of a five-storey apartment complex, featuring:
- a two-bedroom maisonette
- two two-bedroom apartments
- a duplex penthouse
- a roof-level pool
The site’s current open-market value stands at €950,000, rising to an estimated €2.045 million upon completion and letting.
The acquisition process involves two interrelated promise-of-sale agreements, Pembroke POS 1 and Pembroke POS 2, which will ultimately see the sites integrated into a unified block known as La Lex. Required Planning Authority permits have already been issued and rendered executable. Once the bonds are allocated, part of the proceeds will be loaned to Merci Developments to finance this project.
Buġibba project: Eight-storey residential building
The Buġibba development comprises an eight-storey complex including:
- one three-bedroom maisonette
- six two-bedroom apartments
- six three-bedroom apartments
- a two-bedroom penthouse
- a three-bedroom penthouse
The Buġibba site is valued at €1.94 million in its current state, with an expected value of €5.15 million upon completion.
The site is under a promise-of-sale agreement dating back to February 2024, with €50,000 paid as a deposit. Its development permit was approved and rendered executable in June 2025. Bond proceeds will be made available to support acquisition and construction.
Subscriptions for the Series 2025-1 Tranche 2 bonds are now open through authorised intermediaries as QLZH moves ahead with the next phase of its growth plan.
Financial analysis summary
Building on its strong position in Malta’s real estate market, QLZH Group has expanded into property development through its dedicated subsidiaries, Merci Developments and QLZH Developments. These entities are tasked with acquiring and developing key projects, which will either be sold or leased in the coming years, marking a significant evolution in the group’s business model.
Compared to previous reports, QLZH’s financial outlook reflects the full impact of its ongoing bond programme, which is expected to generate net proceeds of approximately €11.67 million by the end of FY2026. The group plans to advance these funds via back-to-back loans to its development companies, generating an estimated annual interest income of €0.6 million for the Issuer once the bond programme is fully deployed.
Total assets for the issuer are projected to more than double from €5.4 million in FY2024 to approximately €19 million by FY2026, driven by the on-lending of bond proceeds for property acquisitions and development activities. Correspondingly, liabilities will rise due to bond payables, with total liabilities forecast to reach around €12.2 million by FY2026 following the issuance of the second bond tranche.
Equity is also set to increase notably, rising from €5 million in FY2024 to a projected €8.5 million by FY2027, supported by shareholder capital contributions and steadily growing retained earnings.
Although profit after tax is expected to decline from €498,000 in FY2024 to €188,000 in FY2027, primarily due to lower dividend income, interest income and capital growth from development projects are expected to sustain the group’s overall financial health.
The group’s balance sheet will reflect a marked shift towards investment property, growing from zero in FY2024 to nearly €12 million by FY2027, underscoring its strategic focus on property development.
Cash flow projections remain positive and stable, with operating cash flows expected to be modest but consistent, supported by interest income and dividend inflows, and liquidity maintained through careful alignment of bond issuance and investment needs.
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