Melite Finance plc - Update to the Market

On 9 October 2020, Melite Finance plc announced that was successful in sub-leasing another two outlets in addition to the one that was sub-leased in previous weeks located in Via Luini, Como. The two outlets that have now been sub-leased are located in Via Portici, Bolzano, and Via Torino, Milan. The new sub-lease agreement for the store located in Via Portici has a term of eight years whilst the new sub-lease agreement for the store located in Via Torino has a term of ten years.

Melite Finance also explained that under the terms of the new sub-lease agreements, the rental income from the two new tenants will increase in a stepped manner such that whilst the rent due for the remainder of 2020 has been discounted, the rent due will increase in 2021 and once again in 2022 to a rent almost equivalent to pre-pandemic levels. The Via Portici and Via Torino stores are two of the flagship stores within the portfolio of the Melite Group as both are located in prime retail high streets in strategic city centres and are also relatively sizeable (Via Portici – 170 sqm; Via Torino – 152 sqm).

Melite Group considers the sub-lease of the Via Portici and Via Torino stores to be an encouraging achievement attained in a challenging economic climate and amidst continuously evolving market conditions. The Group also remains in discussions with potential alternative tenants for the remaining stores and it will publish further announcements to keep the market updated on progress on the conclusion of agreements with new tenants.