Malita Investments signs €53.7 million finance contract with EIB and CEB for the development of affordable housing

Malita Investments yesterday signed a finance contract with the European Investment Bank and the Council of Europe Development Bank at very competitive rates for a period of 25 years. The financing will go towards the construction of affordable housing units.

The contract was signed at the Ministry of Finance in Valletta by Kenneth Farrugia, Chairman, Malita Investments with Rainer Lovato, Principal Country Manager, Council of Europe Develop- ment Bank and Miguel Morgado, European Investment Bank director for Malta in the presence of Michael Falzon, Minister for the family, children’s rights and social solidarity and Edward Scicluna, Minister for Finance

Through this financing agreement, Malita intends to develop circa 680 housing units consisting of 1, 2 and 3 bedroom apartments with the total cost of development including finishes amounting to €58 million. It is the intention of the company for the units to be constructed in different sites across Malta and will address a shortage in affordable housing units which are available to persons who cannot afford to purchase their own residential home or lease the above average and high-end quality apartments that are being introduced in the market.

Addressing the signing ceremony Dario Scannapieco, EIB Vicepresident responsible for Malta said that, "The project will contribute to the alleviation of the current shortages in social housing supply in Malta and generate significant positive social benefits in deprived communities. The EIB is proud to be a partner of the Maltese Government, Malita Investments and the Social Housing Authority in this project, which will be the first social housing operation in Malta for the EIB and confirms the commitment of EIB towards housing investment."

Commenting on the signing, CEB Vice-Governor for Social Development Strategy Rosa María Sánchez-Yebra Alonso said that, “Providing vulnerable population groups with access to affordable housing is one of the CEB’s priority areas of activity. I am very pleased that this loan will increase the supply of housing in Malta, helping in particular those most in need. I am also glad that the new dwellings will meet modern, energy-efficient stan- dards, which will have important environmental benefits.”

In his address Mr Farrugia said that “we are pleased to have to come to an agreement with the EIB and the CEB, two prominent and esteemed European credit institutions which will enable Malita to finance an affordable housing project in Malta. We are equally proud to be spearheading this project which will contribute towards an increase in the supply of affordable housing units in Malta for which there is evidently a significant demand.”