IPO of Valletta real estate owner VBL
VBL plc published a prospectus on July 27 in connection with the issuance of 35,714,286 new shares at €0.28 per share (amounting to €10 million), and in the event that these new shares are taken up, an offer will take place of up to an additional 35,714,286 shares also at a price of €0.28 per share, which will see some of the existing shareholders reduce their stake in the company.
Few investors may be aware of the ownership structure and the business model of VBL. The company claims to be the largest owner of real estate in Valletta. It was set up in 2012 and since then has pursued an ambitious and aggressive strategy aimed at building a portfolio of properties mainly targeting the residential and commercial segments in Valletta.
The business model centres around acquiring properties characterised by legacy tenants and complex title/legal issues at deeply discounted prices. In addition, VBL provides property management services to third-party property owners (including investors in boutique hotels) which also serve as a platform for the group to broaden its recognition across the market.
The company currently owns various properties, having a total gross area of circa 13,200...