Exalco Properties, the main operating arm of Exalco Finance plc, is pressing ahead with its Savoy project, with completion estimated for December 2027.

The €11 million redevelopment of the former Savoy Hotel into a business centre is now progressing through excavation works, following the full development permit issued in May 2024 and the start of demolition works last December.

The building lies at the top of Rue d’Argens hill, and was first known as Villa West End before being renovated as a hotel in 1904. The Savoy Hotel was such a landmark at the time that the area is today still known by that name. Due to its heritage and architectural value, the building is listed as a Category B+ building, with strict restrictions for its preservation.

The development includes a landscaped garden that will be open to the general public during office hours, while tenants and clients will benefit from open spaces full of greenery.

A digital mock-up of what the Savoy Hotel will look like as a business centre

According to Exalco Finance’s newly released Financial Analysis Summary (FAS) for 2025, part of the project costs are being met through internal cash generation, while the remainder will be financed externally –⁠ though no new borrowings are reflected in the company’s 2025 forecasts yet. Management expects more significant funding arrangements to be organised in late 2025 as the project ramps up into full swing in 2026.

A promising year ahead

For the year ending December 2025, Exalco anticipates a steady performance despite ongoing tenant reshuffling at its Golden Mile Business Centre, which has historically been fully occupied by a single gaming company –⁠ GIG Gaming Innovation Group. With the tenant reducing its space requirements, Exalco has already begun negotiating with new tenants to fill the vacated areas, although management conservatively assumes some space may remain unoccupied by year-end.

Overall, Exalco Properties forecasts net revenues of €4.9 million for 2025, slightly up from €4.8 million in 2024, driven by preset rent increases across its portfolio of six business centres.

Profitability is expected to remain robust, with a forecast profit of €2.26 million, slightly below the €2.39 million recorded in 2024, reflecting higher maintenance and tenant turnover costs.

On the balance sheet side, total assets are forecast to increase to €81.7 million by the end of 2025, primarily reflecting the capitalisation of works underway at the Savoy site. While the company’s cash position is expected to dip from €3.1 million to €2.5 million due to the use of own funds for early project phases, overall equity will climb to €56.7 million, driven by retained earnings.

Notably, Exalco’s gearing remains conservative, with no new bank borrowings anticipated this year, leaving its debt limited to the €15 million secured bond maturing in 2028.