Global Capital sells 40 per cent stake in Metropolis for 3.8m - timesofmalta.

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Global Capital sells 40 per cent stake in Metropolis for 3.8m

Global Capital plc on Wednesday said it had agreed the terms for the sale of all shares held by its subsidiary Central Landmark Development Ltd in Metropolis Developments Ltd, the firm behind the multi-million Gira mixed-use project for 3.8 million. The company did not disclose the name of the buyer. According to an announcement on the stock exchange, the company owned 1,634,000 ordinary shares valued at 2.33, which represented 40.85 per cent of the entire issued and allotted share capital of Metropolis. The sale includes the nominal shareholding of the company in Metropolis subsidiaries Metropolis (Contracting) Ltd and M Plaza Investments Ltd. The company said it expected to conclude the transaction before the end of next month. The divestment of the Metropolis shareholding is in line with the companys strategy to focus on strengthening its financial services division, in particular its insurance activities, Global Capital said. It is the companys intention to dedicate the necessary resources and management focus to achieve this objective. Metropolis Developments Ltd managing director Christopher Pace told The Times Business in January that construction work on Metropolis Plaza was to begin no later than the third quarter of the year. Original plans for the central Gira development includes three high-rise buildings of 13, 27 and 33 floors, which will feature the tallest building currently planned in the country. The project includes luxury residential, commercial, health, fitness and leisure facilities, and 500 underlying car spaces. Developers intend Metropolis as the catalyst to the areas regeneration. Global Capital plcs half-year results have been adversely impacted by a 790,593 charge arising from the share of loss of the associated undertaking, Metropolis Developments Ltd. Following the sale of its stake in Metropolis, Global Capital said it would recoup all historic losses recognised over the years through its equity accounting of this investment. Consequently, goodwill allocated to this unit will be reversed at December 31. Meanwhile, Global Capital plc registered improved performance for the first six months of this year. Group losses have been reduced to 1,415,260 after tax for the six months ending June 30, compared to a loss of 2,287,330 for the corresponding period in 2009. Global Capital Life registered a profit before tax of 682,550 compared to a prior year profit of 368,135. The company registered a marginal reduction in premium income when compared to the previous year, compensated for by a significant decrease in insurance claims and surrenders when compared to the corresponding six months ended June 30, 2009. The group has also experienced positive developments in its balance sheet, registering marginal growth for a balance sheet value which now totals over 100 million. Throughout the period, Global Capital said it continued to monitor expenditure while implementing the revitalisation programme launched in the second half of 2009. Cost containment efforts did not impinge negatively on the groups implementation of the revitalisation strategy, with fresh investments in additional staff, training programmes and marketing, all forming part of the second phase of the revitalisation programme. The board announced it will continue to invest further in resources particularly in preparation for the introduction of the new set of regulatory requirements for insurance firms operating within the European Union. Solvency II is scheduled to come into effect in early 2013, establishing a revised set of EU-wide capital requirements and risk management standards to replace the current solvency requirements. The investment division registered a growth in revenue of over 50 per cent when compared to the prior reporting period under review. The property division also reported a modest increase in revenue, mainly attributable to an increase in the rental occupancy levels. During the period under review the division also completed a block of offices in Testaferrata Street and a block of apartments in Madliena with the first sales also being registered in this period.

Sunday, August 29, 2010

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