Finishing work on Mercury project 34-storey tower to be completed by end of year
98% of apartments in Phase 1 of the Mercury Towers project have been sold
by Paul Cocks
Finishing work on the 34-storey tower forming part of the Mercury Towers project is in its advanced stages and is expected to be completed by the end of 2022.
The tower now consists of a 34-storey building above ground which twists on itself at levels 10, 11 and 12 and which was perhaps the most difficult engineering structure of the entire project.
According to the interim financial statements of Mercury Projects Finance p.l.c. for the first six months of 2022, the 34-storey tower is currently completed in shell form.
The car park underlying the second phase of the development, the commercial mall and the serviced apartments are all constructed in shell, save for a few units which could not be roofed due to logistical circumstances.
Construction of the hotel tower has reached level 17.
The project proceeded without any major interruptions during the most challenging months of the COVID-19 pandemic and has now entered the second stage which involves the finishing of the building.
To date the funding of this project is mainly emanating from proceeds of sold units which stand at 98% of total units for sale for the first phase of the project.
Sale of units on the second phase of the project stand at 67% of total units. There was a cancellation of an existing promise of sale agreement on one unit during the first semester of this year. The unit was re-sold within one week.
During the second half of 2022, Mercury Towers Ltd is expected to acquire a further 68% of Mercury Car Park Ltd from Bersella Holdings Ltd, bringing its total holding to 93% in the said company.
The company acknowledged that certain works are being negatively impacted by delays resulting from disruptions in the supply of materials due to the COVID-19 pandemic, which may delay the completion of the project when compared to the original plans.
Furthermore, some increases in costs were noted, more specifically on steel and aluminium, however, the Group has managed to fix and secure prices of the main supplies required, thus mitigating the risk of future increases in prices.
Trading performance
Mercury Projects Finance p.l.c., which was incorporated on 16 January 2019, was established as a special purpose vehicle to act as the finance arm of the Group, the parent company being Mercury Towers Ltd.
On 4 March 2019, the Company issued €11,500,000 3.75% secured bonds maturing in 2027 (Series I Bonds) and €11,000,000 4.25% secured bonds maturing in 2031 (Series II Bonds) . Both bonds were issued at a nominal value of €100 per bond. These bonds were admitted to the official list of the Malta Stock Exchange with effect from 29 March 2019 and trading in the bonds commenced on 5 April 2019.
In accordance with the provisions of the prospectus dated 4 March 2019, the proceeds from the bond issue have been advanced by way of loan facility to Mercury Towers Ltd for the purpose of refinancing existing bank loans and construction and finishing of project elements at the Mercury site in St. Julians owned by the guarantor.
On 21 March 2022, the Company issued a further €50,000,000 4.3% secured bonds maturing in 2032. These bonds were issued at a nominal value of€ 100 per bond and were admitted to the official list of the Malta Stock Exchange with effect from 26 April 2022. Trading in the bonds commenced on 27 April 2022.
The proceeds from this bond issue have, once again, been advanced by way of a loan facility to Mercury Towers Ltd in accordance with the provisions of the prospectus dated 22 March 2022 for the purpose of construction and finishing of project elements, namely the hotel, at the same Mercury site in St. Julians, as well as for general corporate funding requirements.
Interest income during this six-month period amounted to €1,030,466 (2021 - €555,808). Profit before taxation for the same period was €1 I 8,896 (2021 - €70,236). The directors anticipate pro-rata changes in the interest income and expenditure relating to the March 2022 Bond Issue during the forthcoming six months. The accounting policies applied in these interim financial statements are consistent with those applied in the audited financial statements for the year ended 31 December 2021.
Group companies
As at 30 June 2022, Mercury Projects Finance p.l.c. was a subsidiary of Mercury Towers Ltd, which also held Mercury Hotel Ltd, Mercury Car Park II Ltd and Mercury Commercial Mall Ltd, as other fully owned subsidiaries.
