Malta Properties Company plc - Interim Directors’ Statement

Thursday, December 27th, 2018

On 27 December 2018, Malta Properties Company plc announced that during the second half of 2018, the Group continued with its leasing operations and the development of its available properties for leasing purposes. In this respect, MPC completed and leased out its last office at the newly refurbished “The Bastions” premises located in Floriana to the Planning Authority, whilst the remaining space is also subject to long-term lease agreements. The construction of the Zejtun exchange and data centre is progressing in line with planned timelines and the project is expected to be completed by the end of 2019. Furthermore, the new Birkirkara Exchange is near completion and is expected to be handed over to GO plc at the beginning of 2019.

MPC noted that funding for the Zejtun exchange and data centre is through bank borrowings whilst all the other developments were fully funded from internally generated cashflows. The company also made reference to the sale of the Sliema Old Exchange for a consideration of €5 million, as well as the preliminary agreement for the sale of the St George’s Exchange. Furthermore, MPC explained that it is still in discussions with SmartCity (Dubai) FZ-LLC regarding the possible acquisition of 91% of the shares in SmartCity (Malta). As such, MPC is in the final stages of its evaluation of the potential acquisition and any eventual agreement would be subject to general meeting approval, various terms and conditions, satisfactory due diligence and regulatory approvals. The company also added that its financial performance for 2018 remains satisfactory and in line with earlier projections, and that its financial position is expected to remain healthy.

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