Issue link: https://maltatoday.uberflip.com/i/1250070
21.05.2020 6 INTERVIEW What support does Malta Industrial Parks offer for new economic projects, or existing operations looking for an expansion, in terms of finding factory and industrial space? Malta Industrial Parks Ltd (MIP) works in close collaboration with Malta Enterprise in order to support invest- ment, whether it is new projects or the expansion of operations that are already based in Malta. While they provide the schemes and support measures, we act as the landlord that provides the indus- trial space on behalf of government. Applications are submitted to Malta Enterprise and, following their evalua- tion, any approved projects are passed on the MIP for the land allocation. Our involvement, however, commenc- es at the enquiry stage, when we provide technical advice on the investors' specif- ic spatial requirements. Among others, this may include information such as development costs, sustainable build- ing technologies available on the island, utility service costs, connections, and any other related information. Once the project is approved and the letter of intent is signed, we start off a mix and match process that eventually leads to the identification and allocation of the industrial space. In most cases, investors would prefer space that is al- ready built-up as it means they can hit the ground running sooner. However, in the circumstances of the current short- age within built-up factories, at the mo- ment the predominant support is taking the form of land for development. We maintain a continuous relation- ship with our tenants during the entire life cycle of their tenure, assisting in the upkeep of the properties as may be nec- essary as well as addressing any issues they may be facing, including in the common areas of the industrial estates which fall under our responsibility. Which kinds of industries does MIP cater for, typically? Traditionally, our industrial estates ca- tered mainly for companies operating in a large variety of niches within the man- ufacturing industry, with another two areas being dedicated to local artisans and their crafts. As our economy shifted towards ser- vice-oriented industries such as avia- tion, life sciences, and ICT, our proper- ty portfolio had to be adapted not only to meet existing demand arising from operators within these and our tradi- tional industries, but also to anticipate the needs of tomorrow. How much existing factory space is still available and ready for use, currently? We manage in excess of three million square metres of industrial space, with almost 90% of this being contracted to ongoing operations that employ thou- sands of people. e remaining vacant space mainly consists of land, with built-up factories only amounting to around 30,000sqm. With most of this already in the process of being allocated and a small share of properties being tied up in litigation, we are left with only around 6,000sqm of readily available factory space. e lack of space clearly presents a challenge if we are to sustain the eco- nomic growth, the attraction of new in- vestment, and the creation of new and better employment opportunities. We are thus working very hard not merely to address this issue, but to do so in a sustainable manner that strikes a bal- ance between optimizing the space we have available whilst respecting the en- vironment and the communities that live and work within. Due to Malta's size, factory space is undoubtedly an issue. At the same time, environmental concerns related to overdevelopment have also increasingly gained prominence in the past years. How is MIP tackling the problem of finding new space for factories, as the economy expands, while at the same time avoiding further encroachment on undeveloped and green areas? We have a challenging task to provide the industrial space that the country needs in a sustainable manner that also takes into consideration the environ- ment and our communities. MIP is being proactive in this regards, and since 2016 we have been commis- sioning various studies that amongst others have looked into what type of industry do we have in Malta and what else is being attracted, what is the de- mand being anticipated for the coming years, what type of properties are re- quired, and so on. Industry's landlord anticipating Malta Industrial Parks Ltd works in close collaboration with Malta Enterprise in order to support investment, whether it is new projects or the expansion of operations that are already based in Malta, acting as the landlord that provides the industrial space on behalf of government. BusinessToday spoke to MIP CEO RL AZZOPARDI on the agency's role and how he thinks COVID-19 will change industry practices