Issue link: https://maltatoday.uberflip.com/i/699546
maltatoday, SUNDAY, 3 JULY 2016 8 JAMES DEBONO THE Bilom Group has applied to restore and convert the scheduled building The Cloisters on Mrabat Street, into a boutique hotel and restaurant. The project would involve the construction of three new floors above the scheduled building along Mrabat Road. Plans submitted to the Planning Authority foresee apartment blocks encroaching on the gardens behind the protected building. The terraced development, which reaches up to six storeys, News MATTHEW VELLA MALTESE shoppers are turning more and more to the large appar- el store, business analysts have re- ported, even though online shop- ping for clothes and the smaller boutiques are providing stiff com- petition to high street names. Large apparel franchise stores al- most doubled in the last six years, a financial analysis for the United Group, own- ers of the Debenhams franchise in Malta, shows. Between 2007 and 2014, the to- tal number of retail apparel stores in Malta remained relatively un- changed, with 728 stores in 2008 falling slightly to 722 in 2014. H o w e v e r , the analysis suggests that there has been a shift from smaller stores to larger ones, with the latter increasing from 27 to 40 between 2008 and 2014. "Consumer spending has also changed and shows a preference towards the larger stores. In fact between 2008-2014, smaller out- lets registered a compounded an- nual decrease in turnover of 3.4%, while the larger outlets recorded a compounded annual growth rate in turnover of 12.2%." Between 2004 and 2009, retail activity in Malta lagged behind the EU average. After 2009, retail sales stabilised but lower activity levels have been registered within the EU as opposed to a recovery in Maltese retail sales. Still, the historical performance for such high street names like Debenhams, Next, Zara, and Marks & Spencers, shows growing revenues and stable turnovers for these names. In 2014, the four names regis- tered sales of €30 million alto- gether, a massive 41% increase over 2012 when the same stores registered €21 million in revenues. Altogether these four names command a total of 11,389 square metres of sales space. The United Group operates two Debenhams department stores, two MAC cosmetic outlets, and two Oasis fashion outlets. The business group has a 19% stake in Pender Ville, the developers of the Pendergardens residential com- Stately Mrabat Street home earmarked for Bilom's hotel Battle for the high street Revenue (2014) €6.96m €9.29m €9.21m €4.48m Gross profit €3.52m €4.50m €4.04m €2.15m Sales area 2,889 sqm 4,000 sqm 2,000 sqm 2,500 sqm Source: Audited financial statements, Charts Wealth Management Sales boost shows shoppers' appetite for the high street will front Triq Bonaventura and Triq is-Sorijiet, near the Convent of the Sacred Heart. The application seeks to estab- lish the building envelope over the 1,640 square metre site which includes a very large garden. The building enjoys grade 2 protection, which precludes demolition but allows alterations and additions which respect the architectural context and integ- rity of the building. But the gardens do not enjoy any protection. The Planning Authority had even approved a swimming pool on part of the gardens in 2001. The boutique hotel would house 38 rooms while a number of 2- and 3-bedroom apartments are proposed in the rest of the development. The project will include a parking area with 24 garages. Established in 1985 as a neigh- bourhood construction company, Bilom Group, owned by Michael and Gilbert Bugeja, emerged over the last years of existence as one of the leaders in the real estate market. In a sign that the group was ex- panding, a new subsidiary called Bilom High Rise Limited was set up in June. The company owned by Mi- chael Bugeja includes share- holding by Darren Desira, who presented the application for the Mrabat development on behalf of Bilom Group. St Julian's home could become six- storey terraced boutique hotel