Promise of sale

SPB Property Company Limited, a company registered in Malta, being a wholly owned subsidiary of Malta Properties Company Limited, is in the business of property acquisition, disposal, development and management.

By virtue of an agreement dated 04 August,SPB entered into a promise of sale agreement with BLMG Limited, a company registered in Malta whereby SPB promised and bound itself to sell and transfer to BLMG who bound itself to purchase and acquire from SPB the complex without an official number known as the St. Paul’s Bay Old Exchange, situated in Triq San Gorg in Saint Paul’s Bay,; which complex includes the buildings and other improvements without official number, as well as the outside areas, all situated within the boundaries of the complex.

The property is being sold tale quale and subject to the terms of an ongoing lease agreement. The consideration for the sale and acquisition of the property is €3,750,000 payable as to the sum of €375,000, on account of the price, within six months from the date of the promise of sale agreement (unless SPB’s title to the property is deemed defective) and €3,375,000 in full and final settlement of the consideration upon the final deed of sale.

The promise of sale agreement shall remain valid and effective up to the 31 December 2019. Notary Dr Sam Abela was appointed by SPB and BLMG to register the promise of sale agreement with the Inland Revenue Department.

The effect of the transaction is that, upon the final deed of sale, the property will no longer form part of the property portfolio of MPC and consequently there will no longer be any rental income received in terms of the property.

The proceeds from the disposal of the property are expected to go towards funding MPC’s development projects and/or any acquisition opportunities. As the property is neither a business or a company, there are no profits attributable to the property, nor are there key individuals that need to be identified pursuant to Listing Rules 5.164.5 and 5.164.9