United Finance, the financing arm of United Group, has announced that its €2.8 million bond issue has been fully subscribed, and interest will commence to run from 15th September (today).

The unsecured bonds, carrying a coupon rate of six per cent and set to mature in 2029, are the second part of a note issuance programme of up to €10 million.

The first part, a €1.1 million bond issue completed last month, was also fully subscribed.

The Board of Directors of the company thanked the investing public for their support in the successful public offer.

A per the prospectus for the bond issue, the funds raised will be used to acquire and develop a number of real estate projects.

In Mosta, the group will be redeveloping a terraced house in the area known as Żokrija into a five-storey block of apartments for subsequent resale, while two adjacent properties in Ta’ Xbiex are expected to be developed into seven-storey residential buildings.

In Sliema, a property on the corner of St Anthony Str and Zimmermann Barbaro Str is already owned by the group, but will see the addition of a number of levels, also to be financed through the bond issue in question.

Other opportunities

United Group said it is “exploring potential investment opportunities with a view to expanding its business operations in new sectors across jurisdictions in and outside of Malta.”

These include but are not limited to investments in the renewable energy sector and the hospitality sector, as well as investments in real estate and property development projects in and outside of Malta.

The group said it “has identified investment opportunities in these sectors in countries such as Austria and Italy”, noting that “negotiations relating to such potential investment opportunities are underway”.

Such investments are expected to be financed through the issuance of further tranches in the €10 million programme.

United Group

The United Group was established in 1926 by Carmelo Gatt Baldacchino as transportation company, eventually diversifying its interests in tourism, car rental, autosales, retail and real estate. It is the local franchisee for car rental firm Hertz, and owns one-third of Motors Inc, which operated a multi-brand dealership for leading car manufacturers like Kia, Alfa, Jeep, Fiat, Iveco and Hyundai. Until 2021, also operated a department store under the Debenhams brand, although this partnership cme to and end when the UK business announced it was going into administration. Since then, its retail operations are limited to one M.A.C. Cosmetics outlet.

On the real estate front, the group owns GB Buildings in Ta’ Xbiex, and just under 20 per cent of the landmark Pender Place development in St Julian’s. It also owns Pinto Business Centre in Qormi and the Cosmana Navarra commercial property in Rabat.

In June 2022, the group set up United Developments Limited for the purpose of acquiring various sites and properties in Malta for eventual development and resale, with the projects outlined above to be undertaken through this arm.