Malita Investments is on the cusp of securing financing to help it resume a major social housing project in Luqa that stalled this year.
The state-controlled, publicly-listed firm said it has “secured an indicative term sheet for financing” and has also entered into agreements with contractors working on the project. The statement was issued on Christmas Eve.
An indicative term sheet is a non-binding reference document that lays out the basic terms and conditions for financing.
Malita’s Luqa project should see it develop 267 housing units in the Ħal Farruġ area of the town. It is now unclear whether those plans have changed: Malita said that as part of its bank financing plan it is now “also embarking on a restructuring plan to ensure the financial sustainability of the said project.”
Originally slated for completion in January 2026, Malita now expects its flagship project to be completed by December 2028 – effectively three years late.
The company said earlier this month that it would be seeking additional bank financing to help it with its liquidity issues and allow it to get stalled projects moving again, after a strategic review failed to identify alternative sources of funding.
Malita is 82 per cent government-owned and is listed on the Malta Stock Exchange.
The company was set up as a Special Purpose Vehicle for major state infrastructure projects and has in recent years been refocused to finance and manage state social housing projects.
Malita in financial trouble
Three of those projects, including a flagship one in Luqa, are currently at a standstill after Malita ran into financial trouble. Some contractors engaged by the firm have started legal proceedings, saying they are owed millions of euros. The company’s most recent financial statements indicate an €11.6 million shortfall between its current assets and liabilities.
Malita had secured a €22 million European Investment Bank loan for the now-stalled Luqa project and owes creditors more than €80 million in total. But by June its loan facilities had dried out, projects were put on hold and the company is relying on a €30 million cash injection raised by a 2024 rights issue to get by.
In its statement to the market, Malita reassured shareholders it remains solvent “with a strong capital and asset base.”
Malita also came under public scrutiny after its former chairperson, Marlene Mizzi, accused Housing Minister Roderick Galdes of trying to meddle with the company and “hobnobbing” with contracts Malita engaged.
Galdes, and later Malita’s board, issued statements denying political interference. The company’s CEO, CFO and board secretary have all resigned in the past year.
