€2.3m Laguna sale for DIZZ nets 76% return

The DIZZ group subsidiary D Shopping Malls has registered a €1 million surplus on the sale of a Portomaso Laguna apartment it had acquired for €1.3 million with proceeds of a bond issue.

D Shopping Malls said in a company announcement that it had sold the luxury St Julian’s address for €2.3 million, to the tenant renting the apartment – an appreciation of 76% over five years.

The apartment had a book value of €2,200,000 and was originally purchased for €1,300,000 in 2018, using over €610,000 of a D Shopping Malls bond issue. The €611,000 of the proceeds were allocated to meet the sinking fund requirements of 2024.

DIZZ, which runs clothing franchises Terranova, Liu Jo and Calliope, had issued an €8 million unsecured bond, at a 5% interest rate, redeemable in 2026.

The bond’s proceeds were earmarked for retail franchise acquisitions, roll-out of stores, payments of group debts and loans, and to finance the company’s Mriehel hub a new clothing finishing section and a professional kitchen.

The retail fashion powerhouse had also issued €10 million convertible notes programme to acquire shares in the group’s food subsidiaries, which include DK Pascucci, and the Yogorino, Pastrocchio, Salad Box and Nespresso franchises.