Corinthia continues asset sell-off as debt-laden group disposes of €15 million Marsa site

The Corinthia Group – one of Malta’s largest hospitality conglomerates –  has continued to dispose of property assets as it seeks to manage mounting debt and liquidity pressures, with one of its subsidiaries selling the former Match Factory site in Marsa to AX Group for €15 million.

The latest disposal comes just weeks after International Hotel Investments (IHI), Corinthia’s parent company, returned to the bond market seeking €30 million from investors while disclosing that its net debt was approaching €800 million and liquidity remained under pressure.

According to a company announcement issued by AX Group, AX Business Park Ltd, a subsidiary, completed the acquisition of the 6,923-square-metre Marsa property from Marsa Investments Ltd, another Corinthia group company, on 15 July.

The €15 million consideration was paid in full upon the signing of the final deed.

The property, which housed the former Match Factory, is currently vacant after years of redevelopment plans by the Corinthia Group failed to materialise.

AX, controlled by veteran businessman Anglu Xuereb, said the acquisition would enable it to consolidate adjoining properties already owned by the group as it prepares plans for the redevelopment of the overall site.

However, sources familiar with the project told The Shift that the site’s future has yet to be determined. They said AX is still evaluating the most commercially viable use of the property and has not yet decided whether it will be developed as a business park, a hotel, or a mixed-use commercial development. The sources added that the plans are still being refined to ensure the best commercial use of the site within the context of the announced masterplan for the regeneration of Marsa.

While the Marsa transaction concerns a non-operational property, it represents the latest in a series of asset disposals by the Corinthia Group as it seeks to unlock capital tied up in its extensive real estate portfolio.

Earlier this year, IHI completed the sale of a controlling stake in the Corinthia Hotel Lisbon, one of its flagship properties, while retaining a minority interest in the asset. At the time, the group described the transaction as part of its strategy to realise value from mature assets while expanding its international hotel management and development business.

The Shift is also informed that Corinthia has made it clear to potential buyers that other local assets, including some of its hotels and property holdings, among them the Ħal Ferħ site, could also be considered for sale as part of this strategy.

The latest disposal comes against the backdrop of an increasingly stretched balance sheet.

In June, IHI returned to Malta’s bond market with a new €30 million bond issue despite its net debt approaching €800 million and forecast to increase further during 2026.

The group’s financial statements also showed tightening liquidity, with current liabilities exceeding current assets, while much of the proceeds from the new bond were earmarked to refinance maturing debt rather than reduce overall borrowings.

Although the €15 million generated from the Marsa sale is modest when compared with the group’s overall debt burden, the transaction reinforces a broader trend of monetising assets while continuing to pursue an ambitious international expansion programme.