Nationalist Party seeks ways of tapping into real estate wealth

The Nationalist Party is set to put a number of its clubs across the country on the market, in a measure aimed to address the party’s precarious financial situation.

MaltaToday has learnt that the PN’s higher echelons decided recently to put the party’s properties up for sale and in comments to MaltaToday, PN secretary-general Chris Said did not deny this but indicated that the party was looking at maximising its revenues by renting out unutilised space in its many clubs.

“Many of these clubs are located in strategic areas in town and village cores and the party is thus considering better ways to use its properties to give maximum return,” he said.

MaltaToday can confirm that the PN’s executive committee recently resolved to dispense with those clubs that can bring in a considerable revenue to the party, to settle its debts.

Another option would be that of renting out unutilised space to private companies while keeping hold of the bar and other spaces which are utilized by the local sectional committees.

The party has already reached a similar agreement over the Siggiewi club, where a part of the premises is rented out to a bank.

A party source said: “The party wants to find possible buyers that will allow the party to use the same premises for occasional meetings.”

The PN owns 52 properties, apart from the party headquarters in Pietà, and also manages three clubs on government emphyteusis.

These properties are a dormant asset, probably valued in their millions, which have so far remained untapped.

Over the years, the function of party clubs has changed and their importance gradually diminished.

Before the advent of the digital era and local councils, party clubs were the main contact point for residents and supporters.

However, local councils have replaced the functions previously held by party clubs and MPs and candidates’ district offices, while television and the internet have revolutionised the way the two main parties communicate with their supporters and the rest of the country.

The two major parties already rent out the bars of their clubs, though this has at times landed them in hot water, with a number of clubs being involved in drug-related incidents.

Apart from its headquarters in Pietà, which was rebuilt not so long ago, severely draining the party’s resources, selling or renting the PN clubs scattered around the country would provide the party an opportunity to rebrand itself while bringing in some much needed cash.

Following last year’s electoral drubbing the extent of the PN’s financial woes surfaced and although the party has implemented several reforms to address the situation, its finances remain straitened.

With debts reaching up to €8 million, the party’s new administration had to deal with the mess inherited from former secretaries-general Joe Saliba and Paul Borg Olivier.

In the run-up to the March 2013 election the majority of party employees went unpaid for months and in its restructuring process, the PN laid off a number of them employed by its media organisation and other structures. 

However, Said sounded a positive note and said that the PN’s finances “are definitely in a better position than they were a year ago.”

He added “today, the Nationalist Party’s operations are fully sustainable and have been so for almost 10 months, and the party has already closed its accounts on the 2014 European Parliament election campaign.”

Looking ahead, the Gozitan MP, who was elected secretary-general in May last year, said “the next important step in consolidating the party’s financial position is concluding payments of any outstanding 2013 salaries owed to employees. The party is determined to conclude the payments in question over the summer months, and has brought together its committees, organs, MPs and MEPs to successfully reach this objective”.