Key Valletta site renovations ‘back on track’ for VBL Group

VBL Group’s renovation schedule for its real estate assets is “back on track”, as delays arising during the COVID-19 pandemic and shortly after have largely been resolved, according to the company’s interim directors report, signed by Geza Szephalmi, Chairman of the Board.

The company is involved in the full process of real estate acquisition, development, management, and utilisation (rental). It is one of the most active property investors, with a portfolio includes residential, hospitality, commercial property and office space.

Around 30 per cent of VBL Group’s properties are renovated and operational, with the rest of the portfolio in the process of being renovated or being prepared for development as part of a multi-year development schedule.

That schedule had been thrown off during the COVID-19 pandemic and the ensuing supply chain crisis, but the delays have now largely been resolved, with the last projects due to become revenue-generating by 2026.

During its AGM, held last month, VBL Group CEO Andrei Imbroll explained how the group is set on a clear path with eyes firmly set on the first half of 2026 when the current ongoing development cycle will be completed, leading to significant revenue gains.

“Year 2026 will be a game-changing year for the group,” he said. “VBL will transform its property bank from c. 30 per cent of its portfolio today being revenue generating to over 70 per cent of the portfolio generating recurring income through the conversion and regeneration of multiple projects, thus significantly increasing the economies of scale for the group and its potential ability to increase dividend payments to our shareholders."

The company stated that it has already secured new conditional lease agreements for its developed assets, which are expected to be handed over and start revenue generation in the second half of 2026.

More immediately, the next development project of the current cycle is close to final execution and handover to operation, with revenue generation expected to commence in the second half of 2024.

VBL Group owns several properties and whole buildings in Valletta, among them the 'Silver Horse' project that hosts The Gut.

Meanwhile, VBL Group registered a significant improvement in its hospitality operational performance during the first six months of 2024, leading group revenues to rise 16 per cent to €1.7 million.

It also noted that inflationary pressures and shortages in the local labour supply, especially in skilled workers, continue to affect its operational performance.