Palm City registers profit in first year of operations - 28 May 2010


Palm City Residences, the Maltese and Kuwaiti-owned luxury residential village in Libya, has registered a profit in its first year of operations (2009) and is on track to achieve the ambitious projected financial targets. This is a remarkable achievement when considering that the first tenants moved in during the month of June 2009 when the development was still very much of a construction site. Whilst still under construction, Palm City had already secured a substantial number of leases from various companies. Now that the project is practically complete and with a fully fledged operations team in place, Palm City is pleased to report that over 50% of the 413 units are under lease.
 
Developed by Mediterranean Investments Holding p.l.c. (MIH) and located on the pristine coastline of Janzour, a stone’s throw away from the capital of Tripoli, the five-star residences are the first to cater for the specific needs and expectations of expatriates moving to Libya. Palm City is not just a home but a fully serviced village offering a comprehensive array of facilities.
 
The village offers a community lifestyle that provides an ideal setting for expatriates and their families. Throughout the past twelve months, Palm City has become home to people of various nationalities and coming from different industry sectors, giving them the opportunity to enjoy an environment that is truly ‘a home away from home’.
 
“We expect 95% of the units at Palm City to be occupied by the end of this year and we are well on track to achieve a targeted EBIDTA of around 80% of total revenue. At present, our EBIDTA* stands at around 62%, which already demonstrates a very healthy ratio. Once all units are leased and the streamlining of operations completed, we expect to reach our 80% EBIDTA target” said Mr. Reuben Xuereb, Managing Director for Palm City Ltd.
 
Palm City Ltd at presents employs a strong team of 75 qualified and skilled people, which will increase to 120 by year end. The residential village offers top notch accommodation and a host of amenities and leisure facilities centred around a village-like piazza that includes a supermarket, a variety of retail shops, a laundry, a bank, a health clinic, a beauty salon, and restaurants within a secured, family-friendly environment.
 
All retail units within the piazza have already been leased to third party operators.
 
Spread over a plot of land measuring 171,000m2, the development also features a club house, including a spa and an indoor pool, an internationally certified squash court, a fully equipped gym, aerobics room, saunas, kids play area, four tennis courts and a five-a-side football pitch. Complementing these facilities is a private beach that extends 200m with a large, landscaped outdoor pool for the exclusive use of the residents. An all-day dining restaurant and a beach grill are also located adjacent to the private beach and outdoor pool.
 
These facilities have all come to life as the Palm City Residences are now practically complete, with around 280 residents already living in the luxurious village.
 
The village offers a mix of studio apartments, two and three bedroom apartments, maisonettes, terraced houses, bungalows, duplex apartments, penthouses and fully detached villas with their own private pools.
 
At present 204 of the 413 residential units available are already leased with another 78 units in the final stages of concluding the leases. Together the 282 units will generate an annual rental value of €15.2m. Over 70% of the residences are leased for a period of five years.


Each apartment block and set of houses is built on substantially large parcels of land with extensive landscaping around. Each residence is semi-detached with the superior villas being totally detached. This allows tenants to enjoy the mild climate and spectacular views of the Mediterranean Sea by maximising the use of outdoor landscaped spaces.
 
Each residence is finished to the highest European standards both in terms of facilities as also in terms of the quality of materials used. The modern interior design scheme provides a practical layout and each unit comes with state-of-the-art IP telephony, fibre to the home satellite connectivity and high speed internet access.

Tenants come from various countries, including Norway, Spain, Portugal, Germany, Brazil, Italy, the United States, the UK and Malta amongst others, and also from a wide industry background.

Mediterranean Investments Holding p.l.c. (MIH) is a joint venture between the Corinthia Palace Hotel Company Limited and the Kuwait National Real Estate Company (NREC). (NREC)  is a leading real estate company operating in Kuwait and the Arab Gulf region.
 
Since its incorporation in 1973, NREC has been a key player in the real estate industry, as it owns and manages multiple, multi-function, real estate properties throughout Kuwait and neighbouring countries. Its core competences include expertise in developing and operating large retail malls and commercial centres, private residence and the operations of large supermarkets. It also specialises in operating logistics centres for the servicing of retail and wholesale operators in 450 locations worldwide. Amongst other interests, NREC has developed the first large scale, mix-use, integrated development overlooking the Arab Gulf Coast in Kuwait.
 
Recent acquisitions and investments by NREC include strategically-located plots of land in different countries of the region including UAE, Egypt, Jordan, Lebanon, Pakistan and Kurdistan, for the development of large real estate projects of a unique nature.
 
The Corinthia Group started its commercial activities in 1960 and today owns and/or manages 16 hotels in nine countries, and also operates in construction and project management in a number of countries in Europe and North Africa. The Corinthia Group also has a 50% shareholding in MIH and is one of the most successful developers and operators in Libya, having been actively involved in the catering and hospitality industry over the past 30 years. Project and construction management both in Libya and overseas from part of the company’s core competence.
 
For more information about Palm City Residences visit www.palmcityresidences.com

NOTE TO EDITORS:
For further information, please contact:
 
Stephen Bajada
Company Secretary
Palm City Limited
M: (+356) 9946 8910                                                             
E:sbajada@corinthia.com


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