Exalco Group is known locally as a pioneer in developing purpose-built, open-plan modern office spaces, as well as the operator of six prestigious business centres around the island. What many may not know, however, is that the successful company actually finds its roots in metal and steel.  

“Exalco was founded by my father, Alex Montanaro, in 1987, when its core business was international trade in non-ferrous metals,” says Director Michael Montanaro, explaining how the company, then Exalco (Metals and Steel) Limited, would supply its customers with base metal products such as aluminum, copper, zinc and steel commodities.  

With a view towards diversifying into new business activities, opportunity came knocking when the company outgrew its initial office space, leading Alex to lease it out. From there, the entrepreneur was quick to realise that property development on the island had great potential, and identified a shortage of good quality commercial offices that would be able to accommodate new businesses and foreign investment that was beginning to pour into Malta. 

This led to the setting up of Exalco (Property Leasing) Limited in 1989, with a mission to acquire and develop real estate that would be leased out as quality office and retail space. The company launched its first commercial business centre – the Parklane Business Centre, in Guardamangia – in 1997. As the first of its kind in Malta, Parklane Business Centre cemented Exalco’s position as a frontrunner in the sector.  

“Parklane Business Centre was a success story, being the first office building with open plan layouts offering flexibility for tenants, at a time when offices in Malta were basic apartments with an office permit. This became a winning formula for the company, which continued to grow, and specialise in that line. We became leaders in the market, and through experience, we learned and acted upon what our office tenants want,” Michael explains, noting that as a company, Exalco has valuable knowhow that comes from many years of experience in the industry.   

Since the launch of its first business centre, Exalco has added five more prestigious commercial properties to its portfolio, all situated in prime locations across Malta: Mayfair Business Centre in St Julian’s, Cornerstone Business Centre in Mosta, Marina Business Centre in Ta’ Xbiex, GiG Beach in St Georges Bay and Phoenix Business Centre in Santa Venera.  

“We have six Business Centres today, and despite the sizeable square meterage of office space, we continue to enjoy an impressive occupancy rate – which comes from our experience and understanding in dealing with our tenants, and also from our good name and reputation,” Michael says. Asked to elaborate on this, he continues, “we deal with all kinds of tenants. Some with very different needs. Our knowhow and experience is essential in understanding exactly what the tenants’ requirements are, seeing how best to meet such requirements, and then delivering on the set target dates.”  

“Reputation is also of paramount importance and has helped us greatly over the years. We have a very high tenant retention rate. We also often receive enquiries from previous tenants who have since moved to another company, and end up approaching us exclusively for new office space as they would like to rekindle the professional relationship based on their positive past experience with us as their landlords. This is obviously very encouraging, and at the same time humbling for us, as it means that we have built a name that office tenants like being associated with,” he adds.   

Expanding on what differentiates Exalco from other companies offering similar services, and what enables the company to retain its position as market leader, Michael reiterates that it is all down to experience and doing things right. “Our experience in dealing with tenants throughout all these years has given us a good insight into what they want. We continue to operate as a family run business that’s focused on giving the best personalised service possible, and are always just a phone call away to give our tenants full attention and support.” 

It is this emphasis on a quality service that has helped the company weather the storm brought about by the pandemic. “Office space took a massive hit during COVID. Many did not realise how the culture was going to change when it comes to office space following the pandemic. The working culture has changed for good – remote working is here to stay,” he maintains, describing the chain of events, including the pandemic, that negatively impacted the commercial market as “a perfect storm.” 

Michael explains that now, Malta runs the risk of over-supply, owing to a boom in the building of office space in locations like Mriehel, Qormi, Gzira, Sliema and St Julian’s, while demand has diminished. “There was already a correction in the market happening even before the FATF greylisting, coupled with increased competition from other countries vying for the gaming sector. On top of all this there was, of course, the COVID pandemic. As a company, we were certainly anxious to see what was going to happen, but we have come out of it surprisingly well. As a leasing company it’s getting a lot harder to retain 100 per cent occupancy these days, but we are not far off.”   

Looking towards the future of the sector, and how it stands to impact the company, Michael maintains that while the culture has changed for good with remote working, the team at Exalco remains positive. “There will certainly be those that struggle as a result, but we’re fortunately able to offer tenants great value for money,” he says.  

Referencing his team’s plans for Exalco moving forward, Michael explains, “we also have the Savoy project in the pipeline. It is already an iconic building that will definitely offer prestige, which could make for great headquarters for certain companies. We are constantly facing recommendations to construct an old people’s home, or a hotel, or a mixed use with apartments, however we are more inclined to stick within our circle of competence. We understand that there is an oversupply, however this will be a unique Business Centre. Apart from that, the aim is to ride out this period by continuing to do what we do best. Even though we are a family run business, we have a great team with us who all share the same mission statement of nurturing long term relationships and keeping our tenants happy.”