Building QLZH Holding Plc: The Mercieca brothers' 12 million bond

QLZH Group has officially closed the first €6.8 million tranche of its €12 million secured callable bond programme, a move that underscores the market's confidence in the Group's strategy and growth prospects. Fully subscribed within three days, the bond issue is now listed on the Malta Stock Exchange. It offers investors an attractive yield of 5.5%—a rate that has drawn strong demand from both institutional and retail investors.

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This successful fundraiser marks a pivotal milestone in QLZH's broader growth plan. As the Group strengthens its foothold in the property development sector, the fresh capital will provide a springboard for new projects and opportunities.

Investor confidence and market momentum

The rapid take-up of the first tranche highlights more than just the appeal of the bond's yield; it reflects confidence in QLZH's long-term vision. Investors are increasingly seeking opportunities that combine strong returns with solid fundamentals, and QLZH's blend of robust financials, governance upgrades, and an expanding asset base is proving compelling.

The first tranche of the bond has been allocated to high-yield, affordable rental properties, comprising a total of 19 units, which deliver steady income streams. The upcoming second tranche shifts focus toward higher-end investments, particularly exclusive residences within historic palazzos, designed to enhance capital value over the long term significantly.

A second tranche of €5.2 million is expected to be received in the coming months, contingent upon the achievement of specific development milestones. This staggered approach demonstrates the Group's disciplined strategy, which involves raising capital in phases tied directly to project execution and delivery. Such a model not only reassures investors about transparency and accountability but also aligns funding closely with operational progress.

Expanding asset base and long-term growth projections

QLZH's current trajectory is ambitious but backed by data. According to recent public disclosures, the Group is on track to expand its asset base beyond €14 million by the end of this year, with projections reaching €22.7 million by 2027. This growth will be driven by a pipeline of income-generating property developments strategically located across Malta and beyond.

The company's focus on property development is well-timed. Despite economic uncertainties and shifting global investment trends, Malta's real estate sector remains resilient, supported by steady demand for residential and commercial space. By leveraging its market knowledge and strong local presence, QLZH is positioning itself to capitalise on growth opportunities while mitigating risk.

Strengthening governance with a PLC structure

In tandem with its financial expansion, QLZH Group has formally transitioned into a Public Limited Company (PLC)—a structural evolution that signals its intent to operate at a higher level of corporate governance.

The newly appointed Board of Directors brings together a mix of executive leadership and independent oversight. Group Chairman Dr Francis Galea Salomone provides strategic direction, while Group CEO and Executive Director Stephen Mercieca leads the company's growth initiatives. Group Finance Director and Executive Director Michael Mercieca ensures fiscal discipline, supported by non-executive directors Luke Coppini and Edward Cachia, both of whom bring external perspectives and governance expertise.

This governance upgrade not only strengthens internal decision-making but also reassures investors about transparency, accountability, and long-term stewardship.

Leadership vision and market outlook

Commenting on the success of the first tranche, Group CEO Stephen Mercieca described it as "a clear vote of confidence from the market." He emphasised that the infusion of fresh capital, combined with a stronger governance framework, positions QLZH to "unlock the next phase of growth—delivering quality developments and long-term value for stakeholders."

Mercieca also acknowledged the critical role of the team behind QLZH's progress, noting that "this milestone would not have been possible without the hard work, commitment, and loyalty of all our people."

Looking ahead, the company sees a wealth of opportunity in Malta's evolving property landscape. From residential developments to mixed-use projects, the Group intends to capitalise on demand trends while pursuing a sustainable and measured approach to

expansion.

Why this matters for investors

For investors, QLZH's story is one of calculated ambition. The combination of an above-market yield, a phased capital-raising strategy, and a governance-enhanced corporate structure creates an attractive risk-reward profile.

The real estate sector, particularly in Malta, remains a haven in a world where many asset classes are facing volatility. Against this backdrop, QLZH's bond issue provides a unique opportunity: exposure to real estate-driven growth with the added security of a listed, regulated investment vehicle.

The Group's projections, which aim to more than double its asset base within the next four years, signal both confidence and capability. Yet what makes this growth more compelling is its foundation: transparent financial disclosures, market demand for its core product, and a management team with both vision and discipline.

The road ahead

With its first tranche closed, a second on the horizon, and a strengthened governance framework in place, QLZH Group is poised for an ambitious next chapter. Its journey reflects the growing maturity of Malta's capital markets, where investors are increasingly backing local companies with scalable models and international potential.

For QLZH, the message is clear: the road ahead is lined with opportunity. Armed with financial strength, strategic focus, and a bold vision, the Group is not just building properties—it is creating long-term value for its stakeholders and helping shape the future of real estate investment in Malta and beyond. 

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