SmartCity increases share capital by €35 million

An increase in the company capital of €35 million in direct investment was authorised by SmartCity (Malta) Ltd. shareholders this week, bringing up the capital base to €66 million.

This capital consists of a direct investment by SmartCity in Dubai, and does not involve any borrowing or other external financing.

The company said work at the SmartCity Malta site is moving at a faster pace than originally projected.

"As a result of which the expenditure of the project's construction for 2012 is expected to be more than double in comparison to 2011," SCM said.

The SmartCity Malta board of directors this week also approved the budget for 2012, which included the proposed expenditure for this year of €25 million for the completion of the project.  

SmartCity Malta CEO Fareed Abdulrahman said that part of this investment will be used for the development of phase 2, which includes completion of two office buildings SCM02 & SCM03, two retail complexes SCM04 & SCM05, the lagoon and the grand steps, as well as for marketing initiatives both locally and overseas.

With the completion of SCM02 and SCM03, the office space will be increased by more than 18,000 square metres. The company is planning to complete the excavation and finalisation of the lagoon as well as other landscaping projects..

In addition, it was decided that foundation works at the SmartCity Malta site will commence earlier to enable completion of further outlets, the first apartments and a hotel.

Minister Austin Gatt said that Malta had found the way to face up to the economic changes in the region and to restore its positive performance on a global level with this project. "Through its partnership with the SmartCity Malta developers the government has ensured that a huge investment is made in the best working environment in our region without placing the financial burden on the public.

"This means that Malta will be more competitive than other countries which today cannot give priority to their infrastructural investment. Contrary to this, Malta is building a new town in the south which will become an important destination for investment and it is indeed a pity that many do not realise the constant work and worth of SmartCity Malta."

These decisions reconfirm the SmartCity Malta developers' commitment towards the success of their strong investment and to ensure that this project generates thousands of jobs while contributing towards the economic wealth of Malta.