Main Street Complex plc reports “renewed interest” in the shopping complex it owns and operates in the heart of Paola’s square as it undergoes a major refurbishment turning its ground floor into a Little Greens outlet, set to open in late 2026.

The Board said it is “cautiously optimistic” that Main Street Complex “will regain momentum and attract appropriate interest from prospective tenants and visitors over the short to medium term.”

It also restated its view of Paola as “a promising commercial hub”, with Chairman Joseph Gasan noting that it remains “the busiest commercial area in the south of the island.”

“We anticipate announcing the signing up of new tenants in the near future,” he wrote in the company’s annual report for 2025.

The report is the first since the company explored “alternative strategies” for the complex following a decrease in footfall.

The declining number of visitors was largely attributed to increased competition as new malls, including Mercury’s Shopping District and The Shoreline Mall, opened their doors.

The Board had evaluated possible alternative uses of the building, ultimately concluding by November 2025 to retain its current use as a mixed commercial building.

That announcement was accompanied by the news that Little Greens, a grocery outlet, would take over the ground floor following the required renovation.

Main Street Complex plc reported a downturn in revenue, which fell from the €717,000 reported in 2024 to €631,000 in 2025. For comparison, revenue for 2023 stood at €810,000.

The decline is the “expected result” of the company’s operating scenario, whereby a number of tenants accepted to extend their November 2025 lease expiry up to the 31st March 2026 in exchange for favourable terms during the extended period.

Meanwhile, “a limited number of tenants exited in accordance with their contractual terms.”

The company noted that performance was further impacted due to reduced occupancy levels following the non-renewal of three tenancy agreements which expired in March 2024.

Operating expenses increased to €199,000 (2024: €119,000), largely driven by accelerated repairs and maintenance and the inability to recover recurring costs like utility expenses, security and cleaning that would ordinarily be offset by service charges to tenants.

Administrative expenses also rose to €157,000 (2024: €122,000), largely attributable to additional professional and consultancy fees incurred in evaluating alternative uses for the complex and initiating the planning phase of the refurbishment programme works scheduled for 2026.

Profit before tax stood at €188,000 for the year.

In line with the decision taken for the previous year, the Board is not recommending a dividend.

Looking ahead, the Board said 2026 is expected to be “a disrupted one, characterised by reduced levels of activity and limited revenue as the complex will face partial closures during the works period.”

It also hinted that the decision to continue operating as a mixed commercial building does not guarantee that retail remains a priority: “Recent and ongoing international disruptive events and their effects on the global and local economy, as well as the transformational period that the local retail sector is experiencing, dictate that the Board remains vigilant in exploring viable options open to us.”

Nonetheless, new leases with former tenants are scheduled to commence in July 2026, while discussions with prospective tenants remain ongoing.

Share in Main Street Complex plc continue to trade at far below the IPO price of €0.65 per share. They have remained largely level for the last six months at €0.19 per share.