MIDI plc – Interim Directors’ Statement
MIDI plc announced that the company has seen development works at Tigne' Point resume with the commencement of construction works on the T17 East block (38 apartments) in February 2013. The Company is planning to launch these apartments during the last quarter of 2013 when the Company is envisaging to have completed the releveant show flat, with ensuing delivery of apartments commencing in the first quarter of 2015 upon completion of the same.
In view of the severe delays suffered with the issue of full development permits in respect of the next phases namely, T17E block, T14 Business Centre (c. 14,000 sq.m.) and the T17W block (64 apartments) the Company had very limited stock of apartments remaining from its previous launch of T10 apartments in 2008 and Piazza apartments at Pjazza Tigne' in late 2011. The Company's Directors are satisfied with the current demand for both residential and commercial properties. During the first months of this financial year the Company has delivered five apartments and has entered into a promise of sale agreement on another apartment. This will leave the Company with a total of six apartments available for sale. In view of this lack of stock, the Company is projecting a loss for the current financial year.
During the relevant period, the Company realised its investment in Tigne' Mall plc (C35139) whereby pursuant to an Initial Public Offering by the latter, the Company and Tigne' Contracting Limited (a wholly owned subsidiary) offered their entire shareholding in the formerly wholly owned subsidiary. The shares offered by the Company were entirely subscribed to by a number of institutional investors and shareholders of the Company, resulting in the release of substantial capital (circa EUR 20.9m) back into the Company. It follows that Tigne' Mall plc is thus no longer part of the MIDI Group as from May 2, 2013. Proceeds from this disposal have been used by the Company to significantly decrease its bank borrowings and to settle intercompany accounts balances with Tigne' Mall plc. Hence, the Group's consolidated bank borrowings have decreased by EUR 50m through both the proceeds and the fact that Tigne' Mall plc no longer forms part of the Group. The Board of Directors are of the opinion that such a transaction has substantially strengthened the Company's financial capabilities, enabling the Company to raise the necessary bank funding to pursue the continued development at Tigne' North and accordingly enable the Company to pursue its core objectives of developing and subsequently selling off residential and commercial property at Tigne' Point and in the future Manoel Island.
To view the official company announcement, click here.