PAVI Supermarket in Qormi has paid €7 million for around 65,000sq.m of adjacent land with the aim of developing a huge retail and commercial centre.
Sister newspaper BusinessToday reports that sources close to the deal said plans for the land include the development of a shopping village that would encompass the existing supermarket and include a shopping mall and extended commercial space, similar to the PAMA Shopping Village in Mosta, owned by the same group of companies.
The project could also include residential units.
PG Group, owners of PAVI supermarket, PAMA supermarket and shopping mall as well as the ZARA fashion and home franchise, announced on Tuesday it had entered into a promise of sale agreement for the land with Nylon Knitting Limited.
The land was originally leased to Nylon Knitting for 150 years in 1963.
The sale of purchase agreement covers the temporary utile dominium for the remaining period for the portion of land forming part of the land known as ‘ta’ L-Istabar’, in the limits of Qormi.
Pavi Shopping Complex Limited has already paid a deposit of €700,000.
The PG Group did not indicate what the land would be utilised for in its statement to the market. The Planning Authority has so far not received any development application for the site.
Contacted by BusinessToday, CEO Charles Borg said that before the deal is finalised, he could not comment on what the company intends to do with the property.
Nor could he divulge any details before a public statement is issued to inform the market, since the Group is listed on the Malta Stock Echange.
Borg said that the Group will only be able to make its plans public once the sale goes through.
“But the fact that we entered into a promise of sale agreement for such a large amount, and having already paid a 10% deposit, makes it obvious that we have a clear plan in mind for the development of the land,” he said.
The agreement is subject to the relevant searches being concluded satisfactorily and is valid up to 30 January 2023.
Qormi’s commercial hub
The area around PAVI has seen a commercial revival over the past decade with the development of the Landmark commercial complex by the Vassallo Group on the site of the former Lowenbrau factory, and more recently, the development of the Centerparc Shopping mall by TUM Invest.
There are also pending plans by Marsa Race Track Ltd to develop a nine-storey commercial complex as part of a project to upgrade the Marsa racecourse after it was privatised. The permitting process started in late 2019 but is currently suspended at the architect’s request.