Tumas Investments has reassured bondholders that their investments are not impacted by legal issues concerning its Halland Site project.
In a statement to the market, the company told bondholders that it intended to repay bonds that mature in 2027 through revenues accrued from other business segments.
It noted that a financial analysis summary of the company published last year had previously noted that revenue from the Halland Site “will not be necessary for the redemption of the outstanding bonds” by the guarantor.
Tumas Investments serves as the Tumas Group’s financing arm, with its sister firm Spinola Developments the guarantor of the €25m bond issue.
A court last week revoked planning permits for an apartment complex that the Tumas Group has built at the site of the former Halland Hotel in Swieqi, ruling that both the Planning Authority and its appeals board, the EPRT, had “arbitrarily” applied one policy but not the other when approving the project.
The 10-storey building has already been built but remains unfinished. It remains unclear what will happen to the site at this stage.
Tumas Group said it is reviewing the implications of the judgment and “assessing its position going forward.”
The company, which owns and operates various real estate projects including the Portomaso Tower and the Hilton Malta in St Julian’s, is due to replay €25 million in bonds its sister firm Spinola Development Company issued in 2017 next year.
The Hilton contributed €15.4 million to earnings in FY2024, with occupancy rates beating averages. Its rental operations at Portomaso generated €5.7 million in revenue on the back of a strong 90.5% EBITDA margin. The group as a whole held over €26 million in liquid assets at the end of 2024.
