Friday, Apr 19, 2024
logo
Update At 14:00    USD/EUR 0,94  ↑+0.0007        USD/JPY 154,32  ↓-0.276        USD/KRW 1.382,94  ↑+5.38        EUR/JPY 164,11  ↓-0.422        Crude Oil 88,63  ↑+1.52        Asia Dow 3.680,88  ↑+19.64        TSE 1.802,00  ↓-6.5        Japan: Nikkei 225 37.156,27  ↓-923.43        S. Korea: KOSPI 2.591,03  ↓-43.67        China: Shanghai Composite 3.062,00  ↓-12.2286        Hong Kong: Hang Seng 16.184,02  ↓-201.85        Singapore: Straits Times 3,19  ↓-0.016        DJIA 22,13  ↓-0.067        Nasdaq Composite 15.601,50  ↓-81.873        S&P 500 5.011,12  ↓-11.09        Russell 2000 1.942,96  ↓-4.992        Stoxx Euro 50 4.936,57  ↑+22.44        Stoxx Europe 600 499,70  ↑+1.18        Germany: DAX 17.837,40  ↑+67.38        UK: FTSE 100 7.877,05  ↑+29.06        Spain: IBEX 35 10.765,00  ↑+131.1        France: CAC 40 8.023,26  ↑+41.75        

“The Maltese are hard workers and are driven to success”

Interview - September 11, 2014
Upper Rerach talks to Mr. Albert Mizzi, Chairman of MIDI Consortium – the company behind the redevelopment of Tigne Point and Manoel Island in Malta. Mr. Mizzi talks about his successful career, his diverse portfolio of companies and the development of MIDI.
MR. ALBERT MIZZI, CHAIRMAN OF MIDI CONSORTIUM
MR. ALBERT MIZZI | CHAIRMAN OF MIDI CONSORTIUM
This is truly a year of celebrations for Malta. One comes to Malta not only to celebrate what it has achieved in the last 50, 30, 10 years, but also the firm direction where the country is going. In a period of global economic recession, Malta has been one of the fastest growing economies in Europe, and with its new fresh administration, has managed to double GDP in one year alone. What has this economic impact had on Malta’s international image?

The Maltese are hard workers and are driven to success. When I began working, I made approximately 6 pounds a month- an amount not enough for pocket money. This is evidence of how things have changed. We have improved our standard of living and our economy has grown. At independence, we were still relatively undeveloped. It was at this time that the Maltese began to drive enterprise. The first 5 years of independence were unique as social services and a minimum wage were created. It was then when standards of living began rising.

It is a pleasure to talk with you because you were recommended by every interviewee, and also because you are the perfect ambassador for the private sector in Malta. Could you give us a brief history and your keys to success?

My career began working in my father’s company. Today, this company is the largest importer in Malta. In those days, the group had one company- now we have over 30. Our employees have grown from six to hundreds.

How do you balance such a diverse portfolio of companies?

We came to the conclusion that Malta is a small country. Once you obtain 40 or 50% of the market in one product, you cannot go further and are forced to diversify. I have investments in computers, factories, importation, and development through various companies in Malta. Each one of them is run as a separate entity to ensure we can control results. We want everything under control. Luckily, my son, who is a lawyer, is positioned to take over the company. He is doing a fantastic job, and is an even more capable leader than myself. He is looking overseas to expand Mizzi Consortium. 

Where are you looking to expand?

We are looking at expansion in Libya and Romania. We have opened several shops in Libya already. We have made efforts only to place the best brands there at a time when no one is brazen enough to enter Libya. We are profiting from all thirty-six stores, even through this sluggish business cycle. However, business is like this.

What is the most successful concession?

Marks & Spencer. We were the first to acquire a concession overseas. 

What is your favourite sector?

Food is my favourite sector. I went through tough times to build this company. Things have changed and I can recall times when things were not as easy as they may seem now. We have good agencies and brands; we try to deal with the best in the world.

What attracted you to Marks & Spencer, and why do you think they selected you?

In the 1960s, I decided I wanted to learn more about Industry. I travelled to Israel and worked in Kibbutz. The factory happened to be producing goods for M&S. I was accompanied by a good friend of mine, the head of the Jewish Community in Malta, George Tayar to whom we had good connections with the Jewish Companies. During our stay, one evening we went for a meal at the King David Hotel. As I waited in the bar for George to arrive, there was an elderly gentleman at the bar who seeing me on my own offered me a drink. I joined him unit George arrived. This turned to be a very fortunate meeting. We exchanged views and by the end of this meeting the gentleman invited us when in London to join him for Lunch. It was then that we found out he was the late Lord Marks. Time passed and when next in London we made it a point to join him for lunch. During the lunch we discussed various things and I asked him for training in marketing. I spent six weeks training in Baker Street. During this period, I met him for lunch several times and in one of the meetings I requested if we could be honoured by having the franchise of M&S, and he answered, “of course.” It happened to be the first franchise of M&S overseas. We now have very good and long relations and we have expanded not only in Malta but we have taken M&S to Libya and Morocco. On another occasion when again I went to London and met for lunch, I required assistance as I was looking for a well established company to sell plastic table cloths and napkins . I approached my friend who replied, “Do not worry”.

The following Monday, I received a telephone call and was told to visit a certain company which I had already done so without success. On this occasion I was told, “You were so well introduced; all I can do is buy from you.”

What do you think he saw in you?

He saw vitality. I was young and all I discussed was work. That was all I had on my mind in those days: work and expansion. All the companies I own have their own separate identities. They all produce their financial accounts and their monetary results. I look at all results, and attend to those that have problems. Those with no problems, we allow them to continue without interferences.

Why did you decide to found MIDI Group and privatise Manuel Island and Tigne Point?

MIDI Group was formed in 1992 when we decided to expand further our real estate investment. We originally started investing in real estate in the 60’s. Our first involvement was involving ourselves in a sizeable project with partners from overseas. We were contacted by two partners who were interested to have a tourist development and asked me to join and participate in this endeavour. We agreed and we started working. The site they selected was Santa Maria Estate in Mellieha. I realized these people were incredibly business savvy but lacked funding. As the government insisted before selling any plots we must invest in the infrastructure. We therefore, had to find a method how to raise funds and start marketing the project. We set up a small office in London and advertised in newspapers that targeted tourism which we visited for a week every month and offered plots for sale in Santa Maria Estate, for the figure of 1000 pounds sterling with a 200 pounds deposit and 20 pounds a month. The response was very good and within six months we raised over 200 thousands pounds in initial deposits.

Today, things changed and you are lucky if you can buy a plot for less than 200 thousand.

Midi which was established in 1992 was selected as the best prime site on the Island and the policy of the company was always to look to the best locations. Midi is being developed at the moment, we have since had very good results and we have succeeded of disposing the majority of flats which have been built.

We intend to start developing Manuel Island next year once the master plan is approved by the authorities.

That was your start in real estate.

We then moved to other sectors of real estate, such as the Mellieha Bay Hotel. The hotel belonged to a retired colonel residing in Jersey who encountered health problems and wanted to sell this property. We went to see him and subsequently purchased the concession. We had no funds to build the hotel, so we therefore tried to find an international architect who would design it and put us in touch with operators. We searched extensively and finally found a talented architect who had just finished building the Hilton in Teheran. We approached him and discussed our proposal, whether he was prepared to accept in which case having no funds, we offered a 10% share holding of the hotel. He designed the hotel and looked around for an operator. He succeeded in persuading Thompson Organisation who insisted they wanted to buy 50% of the hotel and given a contract of 30 years to operate the hotel. After prolonged and detailed discussions an agreement was reached. The hotel was paid over these 30 years from the Thompson income.

All we invested of our own funds were 30 thousand. 

One of your keys of success is successful partnerships. What are the characteristics you look for in partners?

The reputation of our potential partners is incredibly important. If they have a sound reputation, we proceed. I personally go, meet them, and examine their accounts to ensure the health of this future relationship. 

The Minister of Tourism told us quality is very important. We want to bring life to this report. What does quality mean for you?

Quality means “the best”. If I sit down in my sitting room and I don’t see quality around me, I am not satisfied. If you buy something for yourself, you need to look for quality. 

You are integral in the establishment of the most successful PPP in Malta, Air Malta. How would you grade Air Malta operations?

That was something I enjoyed creating from nothing. We created a company which made money. After my departure, according to me bad decisions were taken.

Do you think it will be put in the right track under the leadership of Maria Micallef?

She will improve the current corporate standing and turn things around. I advised her recently-I believe the only solution is to enter into alliances with big companies. In my opinion, this is the only viable future for Air Malta. It cannot afford travelling across the Atlantic because of the small size of the island.

What advice would you give to British investors who want to invest in Malta?

They should look in more depth at how they can develop the North African market through Malta. The British and Americans are not prepared to enter Libya at this stage. We are there, for taking advantage as we are prepared to take a risk and we have obtained first class concessions from British and American companies.

What do you think the competitive advantages of Malta are?

The Maltese have very high standards of education. We obtain advisors from overseas when necessary . Secondly, the people have integrity and can be trusted. We wouldn’t be given agencies and concessions unless we were trusted.

What motivates you on a day to day basis? Obviously, you can retire.

As long as I have my health, I will not retire. Work is my hobby and I enjoy it. I regret I am not younger to create more projects.

What achievements make you proud?

I am proud of many things. I began with a small company. Today, we have grown in a group of companies in various sectors both in Malta and overseas.
You have to carefully select employees; train them well and pay them well. My managers are trained over the years and they are rewarded for it. Our employees are not just given a salary but also a percentage of profits and shares of the company. If share prices increase, they benefit. I believe this incentivizes workers and sends the right message that we are invested in them as well. 

Having so many companies and sectors, which are different from each other, one would say you have a Midas touch. Could we know what is the signature you want your clients to distinguish your companies for?

My Company is built by a driven, dedicated and hard workers. This is the underlying message of my keys to success. I am nothing but a hard worker. I love my work, it is my hobby.

A prominent business man said that Malta was a country that was passed from gentleman to gentleman through generations. How would you describe Malta to our readers?

Come to Malta, try your hand at your endeavour, and you will be successful.

  0 COMMENTS