5 - 11 April 2001

Huge response to new concept in property business

by David Kelleher

The directors of The Property Leasing Co. Ltd have received a huge response within days of their company being set up. Chairman George Zammit told The Malta Business Weekly that businessmen have been calling to offer their property, attracted by the concept behind the company, which is innovative for Malta though much in use elsewhere.
“The Maltese businessman has begun to think in terms of leasing rather than owning the property he uses for his business,” he said. “This is the way things are done overseas. We have taken a practice that has long been in use elsewhere, and have brought it to Malta. Businesses no longer buy property. It’s more tax efficient to lease it, and it doesn’t tie up all that capital, that can be put to better use in taking the business forward.”
The Property Leasing Co. Ltd plans to buy prime commercial property in return for a mix of cash and shares in the new venture. If the seller wishes to stay on as a tenant, then he may do so, with even a possible buy-back option.
The benefits are the cutting down of interest on loan repayments on the property, the release of liquid cash, and improved tax efficiency. Deputy chairman Chris Grech said that this should work to relieve the stress of those who are financially overextended, besides bringing in the benefit of shares in The Property Leasing Co. Ltd. The promoters of the new company – chairman George Zammit, deputy chairman Chris Grech and director Christopher Pace – have all been “inundated” with requests for more information from people who read the news coverage of the company’s plans.
“We have had several highly interesting proposals from top players in the field,” said Mr Pace. “The situation is very promising indeed.”
The company has two non-executive directors: Brian Mizzi and Richard Clough, who is chief executive of Care UK plc. New proposals will be vetted by an investment advisory committee that includes architects Ray
Demicoli and Edwin Mintoff, and John Pace and John Ellul Sullivan. The promoters have already placed some of their own property in The Property Leasing Co. Ltd: three floors at the Portomaso Tower, several floors at 114 The Strand, Gzira, and the block at 120 The Strand, Gzira, which houses the Globe Organisation. A subsidiary company for the development of prime commercial property, for lease to blue chip organisations, will be set up shortly.
Mr Zammit said: “Demand for blue chip commercial property is high. New companies coming in to Malta are looking to rent good, smart space, but can’t find what they need. We aim to meet that demand through our development subsidiary.”