€32 million in apartment sales for Midi during 2011, but tight credit concerns remain

The developers of the Tigné Point and Manoel Island projects, Midi plc, have registered a profit before tax of €3 million for the 2011 financial year, compared to a profit of €1.5 million in the previous year.

Apartment sales in the form of final contracts totaled €32 million (2010: €22.8 million), including the final apartments in the Tigné South phase together with apartments in the T10 block where the first sales were concluded in 2010.

Revenue from commercial properties totalled €5.1 million having increased from €3.7 million in 2010.

But the group has remarked that tighter credit is likely to persist in 2012 due to uncertain financial and economic conditions, and hinted that Midi's funding strategy "could result in changes to the use of the asset base pertaining to the different phases of the project."

No specific mention is made of whether changes to the use of asset base could involve divestment of parts of its capital projects.

"The group has been reviewing its financing arrangements to ensure that it is in a position to meet its short-term operational and cash flow commitments. After the end of the reporting period, the group's bankers and a number of restricted shareholders have confirmed their willingness to support the group's financial requirements."

Bank of Valletta hold 8.9% in share capital in Midi plc.

Midi plc is reviewing its funding strategy in the context of the timing of the different development stages of the Tigné Point and Manoel Island project to sustain the group's long-term prospects.

Midi said the group's liquidity and capital management programme will include monitoring the feasibility of carrying out the projects' phases according to income and cash flows, reviewing the sustainability of the carrying amount of assets allocated to the respective phases, and reviewing the funding mix to be applied to each phase.

"The outcome of the review of the group's funding programmes in the longer-term could potentially result in changes to the existing or projected use of the asset base pertaining to the different phases of the Tigné Point and Manoel Island project, to leverage the underlying cash flow streams."

During 2011, residential construction works were concentrated on the finishes of 22 new apartments overlooking Pjazza Tigné which were launched close to the year end. The market response on these apartments has been positive and almost half of these Piazza apartments are subject to promise of sale agreements as at the date of approval of these financial statements.

Construction of the basement levels for the Tigné North phases comprising four levels of underground parking, distribution roads and plant rooms has been virtually completed.

2011 marked the first full year of operation for 'The Point' Shopping mall and the public car parking underlying 'The Point' and Pjazza Tigné. Results from these two commercial operations have been encouraging with significant increases in revenues, footfall and car park occupancy registered, Midi plc said.

In January 2012, the Malta Environment and Planning Authority (MEPA) issued the full development permits for the forthcoming phases at Tigné North. The group is preparing to embark on the final phases of its Tigné Point development. This will include a mix of residential units, offices, commercial offers together with open public spaces and regenerated heritage sites.