On 28 March 2020, Mediterranean Investments Holding plc issued an announcement providing an update on its operations and also reassuring stakeholders of its continued strength and stability. In this respect, MIH explained that despite the global spread of the ‘COVID-19’, ‘Palm City’ continues to remain operational with significant occupancy. Nevertheless, the company has taken immediate measures to reduce operating costs to a bare minimum whilst ensuring that the overall property is maintained in pristine conditions.
MIH added that given the situation in Libya, and the uniqueness of ‘Palm City’ as a product, it continues to receive demand for the long-term lease of its various residential units from a number of clients that require security and serviced accommodation. In aggregate, ‘Palm City’ operates an enclosed residential compound with 413 units and achieved an occupancy level of 55% in 2019 from long-term rentals of one year and above.
So far in 2020, ‘Palm City’ also continued to perform well and has an occupancy rate of 50% generating similar levels of EBITDA and operating profit as 2019. MIH also noted that it has sufficient funds to maintain all its payment obligations, not least the payments of bond interest as they arise throughout the course of the year.