Stockbroker Paul Bonello to head Malita Investments

Stockbroker Paul Bonello, of Finco Treasury Management, is set to be appointed chairman of Malita Investments, the company set up by the previous administration to administer the financing of the City Gate project for the siting of the new parliament and the Royal Theatre.

Bonello,who led an investors' campaign to recoup savings they lost in Bank of Valletta's La Valette multi-manager property fund back in 2010, had endorsed Labour in the run-up to the election and even addressed a party mass meeting, presenting himself to voters as a "switcher" who was voting Labour.

Malita, 70% owned by the Maltese government, manages a property portfolio of strategic national importance. The 'special purpose vehicle' is a public company listed on the Stock Exchange, and receives the annual rents from the Malta International Airport and Viset, which are run by private consortia. The company invests in local and foreign stocks and shares as well as issue bonds to the public, raising money for the City Gate project as well as running the project.

MIA will pay €905,000 in rent this year, and €4 million between 2013 and 2016. By the end of its 65-year lease, it will have paid €120 million.

Once the City Gate project is completed, the properties will be leased out at a rental yield commensurate with that generated in the commercial property market in Malta.