MONEY ISSUE 61 by BE.COMMUNICATIONS

B US IN E SS

L IFESTY L E

D ESIGN

TH E R E AL E STATE A N D DES I G N EDI T I ON I SS U E 6 1

COVER STO RY

Darren Zarb

IN THE DRIVER'S SEAT

18 Joseph Por telli

TOWERING ABOVE ALL OTHERS

10 Hon. Aaron Farrugia

SHAPING THE FUTURE OF MALTAâ&#x20AC;&#x2122;S LANDSCAPE

28 Konrad Buhagiar & Charles Sciberras

GOING GREEN

4 · MONEY

ISSUE 61

WELCOME

Building blocks — The controversial Central Link project is now open, albeit a lot of work is still being done, to reduce traffic jams by no longer having all cars pass through Mdina Road in Attard which bottlenecks into a single lane. Down in the southern end of the island, the Marsa flyover is also making progress and the Sta Lucia project is moving along with works continuously on the go. Most of the island is currently undergoing some form of roadworks.

COVER Darren Zarb In the driver’s seat Read the full story on page 16

Of course, progress is essential; the maintenance and upgrading of the road network is a crucial element of the infrastructure of any country. But are we focusing too much on providing new roads for cars, rather than thinking about providing new transport options that will decrease our use of personal cars? Likely, having wider roads will only reduce traffic for the short-term because, as more cars are introduced onto the roads, that infrastructure will eventually not be able to support the increase in the number of vehicles—and then we’re back to square one. Besides, we also must contend with buildings sprouting up (and up and up) in every bit of space available. Of course, this isn’t a recent phenomenon. The cementification of Malta began back in the ‘90s and has shown no signs of abating. Not all new buildings are bad (let’s make that clear); however, some are certainly unnecessary. How many blocks of pokey flats do we need? We have a young adult population who aren’t earning (or saving) enough to make it on the property ladder as single people, but only enter the property market when they’re getting married. Therefore, can only get a mortgage because there are two salaries to afford the monthly repayments.

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Our young adults are already stunted when it comes to responsibility and the concept of ‘growing up’; living at home throughout their university years and then some more, until they find a partner whom to buy a property with—from parents to partnership without any years of accountability. By having a property market where prices start high means that a whole sector of society is being ignored and forgotten. If property prices are made more affordable, and potentially if renting becomes more commonplace, we would be helping a generation of people to become financially independent and contribute more to society. A country’s economy doesn’t exist in silo of its people, and if planning was done more holistically with a long-term vision, rather than to fill a gap, the economy will prosper— and so will the country.

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8 · MONEY

ENVIRONMENT

SHAPING THE FUTURE OF MALTA’S LANDSCAPE

Hon. Aaron Farrugia is the minister responsible for the environment, climate change, and planning. That includes waste management, environmental regulation, and entities such as the Planning Authority (PA), the Environment and Resources Authority (ERA), WasteServ, Ambjent Malta, and the Resource Recovery and Recycling Agency (RRRA). MONEY writer Dayna Camilleri Clarke spoke to the minister to understand what's in the pipeline and the current work being done.

ISSUE 61

CONTENTS

ARCHITEC TURE

GOING GREEN

COVID-19 AND ITS BEARING ON THE REAL ESTATE MARKET

Let’s be frank—the unprecedented situation brought about by COVID-19 put the entire globe to its knees. Its anonymous emergence surprised many to how one should approach such uncertainty, both from a health and economic perspective. Jordan Portelli explains.

URBAN GREENING

ECONOMY

A N A LY S I S

CAN MALTA’S PROPERTY MARKET WEATHER THE PANDEMIC?

It stands to reason that the impact of the coronavirus— wage cuts, potential business failures and job uncertainty— would make many people cautious about making the most significant investment of their lives, buying a home. Keith Galdies and Keith Tanti give a detailed analysis on the current property market.

IN AGREE(N)MENT

Imagine a greener Malta, one with functional green spaces serving as the lungs of the island that interconnect, clean, vibrant places you want to spend time with your family and friends. This is still a dream for many, although architect and project manager Charles Saliba hopes to one day make this dream a reality through his Green network vision. Dayna Camilleri Clarke explores.

BOOKS

FEARLESS

Malta: 6 October 2017—a leading Maltese journalist is killed in a car bomb. MONEY delves into press freedom and how one can communicate its importance to children in a simple manner. One attempt is a picture story book by Gattaldo celebrating Daphne’s life, to be launched soon here and in the UK…

COVER STORY

IN THE DRIVER'S SEAT

As the luxury transport service industry gains more momentum in Malta, Darren Zarb, managing director at Dacoby Chauffeur Service Malta, drives MONEY through his journey to becoming one of the island’s leading luxury transport providers.

R E A L E S TAT E

TOWERING ABOVE ALL OTHERS

Love it or hate it, we’ve all seen the enormous ‘tower with a twist’ taking its place in the St Julian’s skyline. Giselle Borg Olivier speaks to Joseph Portelli, the man behind the controversial project bearing the stamp of Zaha Hadid.

INTERIORS

YOUR HOME IS YOUR WORLD

Many of us have spent and probably will spend more time at home. So how should we be designing our homes as a restful but also functional home to suit the many functions it serves—work, play and sleep? Veronica Stivala speaks to the designers for some tips.

S U S TA I N A B I L I T Y

ANOTHER BRICK IN THE WALL?

S U S TA I N A B I L I T Y

HOMING IN

Do we need to transform the real estate sector where all stakeholders should engage in a discussion to respond to today’s needs and future challenges? JP Fabri believes so.

L AST WORD

PESTILENCE

The Bluesman analyses COVID pandemic measures undertaken in the hope that eventually the pandemic, like previous ones, will be a thing of the past in no time.

FA S H I O N

AUTUMN APPAREL

Autumn doesn’t need to be a browner shade of brown. MONEY welcomes the new season with a show of delectable fashion pieces.

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10 · MONE Y

ENVIRONMENT

ISSUE 61

Dayna is a senior speech therapist by day and feature writer by night. When she’s not busy fixing words, she is travelling the world to add to her fridge magnet collection.

SHAPING THE FUTURE OF MALTA’S LANDSCAPE Hon. Aaron Farrugia is the minister responsible for the environment, climate change, and planning. That includes waste management, environmental regulation, and entities such as the Planning Authority (PA), the Environment and Resources Authority (ERA), WasteServ, Ambjent Malta, and the Resource Recovery and Recycling Agency (RRRA). MONEY writer Dayna Camilleri Clarke spoke to the minister to understand what's in the pipeline and the current work being done.

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

ENVIRONMENT

MONEY · 11

D Earlier this year you announced a waste-to-energy plant to cater for 40% of non-recyclable waste. Is it 2026 a realistic time-frame? What additional steps are you taking to support sustainable development with regards to waste management? A I don't mind saying that I believe waste is one of the most significant challenges that our country faces, no less because it can have repercussions on many different fronts. Therefore, the largest ever investment in the waste management sector we've ever had is necessary. It will not only take Malta to a new level in waste management but will also improve our overall environmental performance and help us reach our recycling targets. New state-of-the-art waste management facilities will allow waste streams being reutilised to their full potential: the investment includes pillars in waste management such as the much-needed waste-to-energy plant which will significantly limit our landfilling volumes, a new plant for the management of dry recyclables, a plan to treat organic waste to extract energy and produce compost for use in agriculture, as well as the replacement of the clinical and abattoir waste incinerator.

associated physical and psychological benefits. The local councils themselves chose the exact sites, and the species of plants were chosen carefully to be suitable for the area, based on their environmental conditions, and carried out following ERA's landscaping guidelines.

Time-frames are tight, but we are determined to have this plant up and running as soon as possible order to begin moving farther away from the predominant reliance on landfilling: 2026 was the original target date, but we want to be as ambitious as possible. We have a holistic infrastructural strategy that will also be supported by a new waste management plan.

economic value of recyclable resources. Considering the Covid-19 pandemic and its impact on our country's economy, this scheme becomes even more important, as experience teaches us that similar schemes create green jobs. We are also implementing several measures, many of which will be introduced through the single-use plastics strategy. We need to use this to strengthen the element of sustainable consumption: plastic is increasingly problematic due to our increasing consumption. The impact is even more significant because the sea has no borders. D Can you tell us more about the local and national urban greening projects you have on the horizon?

We have signed the license agreement which will allow Malta to have a refunding system for beverage containers on a national scale. The scheme will not only benefit our environment but also provide opportunities that the circular economy brings, by reusing resources and changing our cultural attitudes to appreciate the

A I believe the time has come to focus on ways in which to improve the environment of our communities, and this year we launched several new environmental projects. Across nineteen different localities, to be exact. These were greening projects in urban areas such as streets, squares, and other public spaces that are devoid of greenery and the

We aim to adopt a circular economy approach: the waste-to-energy plant will handle waste that cannot be recycled or recovered in other ways and will transform them into energy.

While it is all well and good to have zones in rural areas where families can visit, we need to make sure that green zones are also present at the heart of our localities, where people live, work, and spend most of their time. These projects are a first step towards the holistic vision for the environment sector, and I am committed to continuing working towards a shift in mentality in this regard. In fact, this is just the beginning. We are looking towards a green revolution in the country. We are investing millions in vertical green walls at the Hamrun-Marsa Bypass and three industrial zones. We also launched an innovative way to tackle environmental planning: a design and build competition among the country's architects. An unprecedented investment of €3 million in environmental projects under the concept of Green and Blue Infrastructure was launched in three urban areas in three localities as part of a joint initiative with the Parliamentary Secretariat for Citizenship and Communities. These projects will kick off with a competition for professionals in the field and will be chosen based on their environmental benefits and health benefits for residents. →

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I believe Malta needs projects which genuinely are in line with our vision to move from grey to green in terms of infrastructure, and which truly benefit the health of residents and improve wellbeing. This is why we are looking at less traditional ways of tackling national projects, and because the time has come to revolutionise the concept of intelligent planning in our country. D What is the barn own project? Why is this important? A Conserving our environment and protecting our biodiversity is crucial. These are the pillars of functioning ecosystems

and sustainability. It is our duty to promote and invest in initiatives that preserve our environment and our species for future generations: because we owe them as much. Our natural heritage mustn't become a distant memory. The barn owl conservation project led by the Federation for Hunting and Conservation (FKNK) aims to re-introduce barn owls into the wild around Malta and Gozo through

I believe Malta needs projects which genuinely are in line with our vision to move from grey to green in terms of infrastructure, and which truly benefit the health of residents and improve wellbeing

ENVIRONMENT

techniques successfully used by falconers around the world. It will effectively reintroduce the barn owl back to its natural habitat and extend to other urban and rural areas in the Maltese Islands after this. Such processes of reintroduction and conservation are both critical approaches in conservation efforts: they improve the conservation status of species that have suffered population decline usually related to human impact. The project is taking place at Razzett talBaghal in Buskett, and the area of Buskett itself is significant -- it is amongst the most important Natura 2000 sites in Malta. The general area is also essential grounds for many types of flora and fauna. Apart from being an N2K site, it was designated as a Special Area of Conservation and Special Protection Area. We've also developed a management plan for Buskett, and implemented a project to increase woodland coverage, encourage citizen engagement and manage the site. To further implement and involve civil society, the rziezet in the area were assigned specific funding and functions. D The PM says construction will be vital in the post-COVID recovery: do you agree that Malta should press on the accelerator to kickstart the economy? You also have spoken of the 'balance' between construction and environment, what challenges do you face here? How are you striving for balance?

ISSUE 61

A Public health is a priority for the Government. But so are social issues and the economy. Our most robust industries will drive our post-COVID recovery - and the construction industry is indeed a significant part of our country's economy, employing thousands of people. In the same way, the Prime Minister was correct to stress the importance of the construction industry post-COVID, I believe he was right to bring planning and environment back under the same ministry. This is the first vital step towards achieving the 'balance' that I often speak of and which is necessary to bridge the gap between environment and development. The second step is the strong policies we are putting in place, and it's not just talk: the review of the rural policy, the fuel stations policy, SPED review, light pollution guidelines, increased protection of scheduled buildings, and other policies in the works will lead to precisely this end. We are also thinking long-term and moving away from electoral cycles, pouring our energy and resources into the development of a National Strategy for the environment for the next thirty years. I strongly believe in both intelligent planning and continuous dialogue, and the Government has set a clear path towards achieving a stable balance between construction, economic strength, green projects and overall wellbeing.

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URBAN GREENING

IN AGREE(N)MENT

MONEY · 15

Dayna is a senior speech therapist by day and feature writer by night. When she’s not busy fixing words, she is travelling the world to add to her fridge magnet collection.

They say “travel broadens the horizons”. It’s often when we are abroad a great idea can be presented, and you wish it were readily available in your country of origin. It’s precisely this sentiment that occurred to architect and project manager, Charles Saliba. Through working internationally, and now UK based, Saliba felt a fire burning within when it came to Malta’s green spaces. He couldn’t sit back and watch nothing happens, and set about creating a working group to explore initial ideas on how to improve the green spaces of Malta—this led to the creation of the “Green Network” vision.

Saliba’s proposed 10-15 year vision sees the regeneration of Malta’s existing green spaces into more widely used and functional areas, including renovating areas such as Ta’ Qali, Chadwick Lakes and Buskett woodlands. “Improving our green spaces has multiple benefits on our well-being, health, pollution levels and the economy. Creating Malta’s lungs has never been more important, and an accountable body needs to be formed to start auctioning it”, states Charles. “There are countless individuals across the islands doing some incredible work possibly in isolation. These individuals need to be brought together to bring about change”. His vision has already had its seeds planted, having presented the notion to the transport and environment ministers back in January 2019, through the support of the Building Industry Consultative Council. Saliba states that his vision would also need to involve town planning which ensures the integration of green infrastructure in the planning process. “Each planning approval could have an element of green infrastructure bolted on that contributes to the creation of the overall Green Network vision”. He strongly believes the answers are already underneath our noses and must start with awareness for the need for such fruitful green spaces. “Here in Malta, we have challenges around a lack of open spaces, obesity, flooding, air pollution and traffic.

CREATING MALTA’S LUNGS HAS NEVER BEEN MORE IMPORTANT, AND AN ACCOUNTABLE BODY NEEDS TO BE FORMED TO START ACTIONING THIS We need to change the way people think about being green and the environment.” Increasing public awareness for the need for change and setting up an accountable body, Saliba believes the third step would be accomplishing a masterplan. A solid nationwide masterplan in which existing open spaces can be identified, together with the creation of new areas supported by the planning process and how they can all be interlinked. “This masterplan would need to be fully incorporated into our town planning policies, through which permitted developments can make their proportionate contribution to making this masterplan come to life. New developments can repay to the community by adding to green areas,” Saliba said. Saliba believes that after explaining the Green Network in meetings with the BICC and the Maltese government, his proposal can lead to better and greener connections between Malta’s open spaces—allowing a seamless cross over from one local area to the other within regional clusters of green and open spaces.

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ISSUE 61

COVER STORY

In the driver’s seat As the luxury transport service industry gains more momentum in Malta, Darren Zarb, managing director at Dacoby Chauffeur Service Malta, drives MONEY through his journey to becoming one of the island’s leading luxury transport providers. M Your chauffeur business caters for clients who require a luxurious travel experience. What do you think has been the reason for your success in this sector? D If I had to give you a short answer, it would be our efficient and personalised approach and our high standards. With Dacoby, every client feels uniquely cared for by a team dedicated solely for them. We obsess over delivering an unmatched customer journey and experience. Apart from this, Dacoby now boasts one of the largest, most modern luxury fleets in Malta. A wide range of amenities is available on each vehicle, including bottled water, hand sanitiser, tissues, and hand wipes, among others. Each vehicle is also equipped with all the brands of smartphone chargers and Wi-Fi connection. Furthermore, we also ask each client for any specific requests such as the brand of water or any beverages they would like to drink during their journey. Once their preferences are in the system, we ensure his or her requests are met on every trip. We even specify the temperature of the vehicle and whether the client enjoys interacting with the chauffeur or not. We’ve always been one step ahead when it comes to personalising our services, and this has been one of the keys to our success. Initially, some used to question our decision to include bottled water in every vehicle, but today it is common practice within the industry. Apart from our efficient service, a state-ofthe-art fleet and personalised approach, our team of professional chauffeurs has been our main selling point. A chauffeur service company involves far more than

merely transporting people from point A to point B. Our chauffeurs are highly trained, patient, well-mannered and genuinely enjoy communicating with people. Chauffeurs are instructed to arrive at their pick-up location 15 minutes before their call time and wait

until the client is ready to go. They are discreet and will never question any delay from clients. Clients are informed beforehand regarding the identity of the chauffeur that has been

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COVER STORY

M O N E Y · 17

assigned to them, and they would be able to contact their chauffeur directly regarding any changes and updates relating to their trip if they wish. Furthermore, we also offer information about the specific route the chauffeur will be using if such information is requested. All our clients are given optimum privacy, and our chauffeurs are obliged never to disclose any personal or professional information in relation to our clients. Our discretion and professionalism are what have helped us earn the trust of our esteemed clients who continue to choose us as their preferred form of transport in Malta. M You started off working with your dad as a bus driver... Over a decade after, you own a VIP chauffeur service. What helped boost the popularity of your service in the last decade and what gives you a boost to continue to deliver this service? D One thing that I have always believed in is that you start slowly and keep growing steadily. Dacoby first started as a one-person, one-car company, and after a couple of years, we started expanding our fleet and workforce. I was always one to take calculated risks and was not afraid to experiment with new niches, and approaches in the industry. As time went by, Malta managed to attract larger companies and diversified its business environment, which meant more opportunities were created for the local transport industry. Subsequently, we explored more innovative and creative ideas and evolved together with our customers. Our passion for what we do enables us to innovate and always remain a step ahead of our competition. Today Dacoby has one of the largest market shares in the luxury transportation industry and is the popular choice for luxury hotels, private jets as well as luxury yacht charters and celebrities visiting our island. M What checks and balances do you have in place to keep a high-quality standard? D All vehicles are cleaned and sanitised before and after every journey and equipped with all the standard items provided on each

Our passion for what we do enables us to innovate and always remain a step ahead of our competition.

trip. Periodically, we provide training to all our chauffeurs, covering various topics, including etiquette. Something which we have always believed in is the feedback of clients. We try to gather as much feedback as possible, whether positive or negative as that allows us as a company to identify our pitfalls and work to improve on them. We have also engaged mystery shoppers to ensure we understand all aspects of the level of service we are providing our clients. M Was COVID a slap in the face for your industry too? How did you get along? D It is a tough time for the entire industry,

as many clients cancelled their travel plans and social commitments. Seeing the full fleet parked inside the garage was heart breaking; however, we were thankful that all our staff and families were safe. Having said this, we took the slowdown as an opportunity to investigate our internal processes and see where we can continue to improve and optimise our service. In fact, during this period we relocated our offices to a larger area which is closer to the fleet base, which means that Dacoby now has all its operations under one roof. We have also taken the time to invest in the best cleaning and sanitising procedures and equipment to make sure that all our chauffeurs and our clients are safe. M Tell us more about your personalised chauffeur services. D I love comparing our job to that of an artist. For artists to paint a timeless piece, they need a vision, research, the right materials and tools, canvas and other components which combined, help deliver an excellent result. The same applies to our industry. The booking office must have the vision of the client’s needs, and in turn can provide all the necessary information to the chauffeur who will then plan the best route for the journey, ensure all the amenities requested by the client are in place and above all give the best service to our clients that is in line with their expectations. Clients choose a personalised chauffeur service because they want the guarantee that their journey is smooth and hassle-free.

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R E A L E S TAT E

ISSUE 61

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

R E A L E S TAT E

MONEY · 19

Giselle is a marketing professional, and independent writer and proofreader. She runs Content for Success.

TOWERING ABOVE ALL OTHERS Love it or hate it, we’ve all seen the enormous ‘tower with a twist’ taking its place in the St Julian’s skyline. Giselle Borg Olivier speaks to Joseph Portelli, the man behind the controversial project bearing the stamp of Zaha Hadid.

In recent years, the name Joseph Portelli became synonymous with development across the Maltese Islands. He is the name behind the Ħal-Saghtrija and ĦalWardija developments in Gozo, the Creekville complex in Swieqi, and the Ivory Suites complex in Buġibba, to name a few. He is also the new owner of the long-closed Jerma Palace Hotel in the south of the island. Despite his lengthy development portfolio, Joseph Portelli doesn’t look like your typical development entrepreneur—there were no sharp suits with crisp white shirts when I met him. Instead, he greeted me in denim Bermuda shorts and a North Sails t-shirt. However, once we started talking, it was immediately evident that Joseph is shrewd and has the gift of the gab as he talked me through his vision for his projects. Following an impressive presentation about the different developments undertaken by his company, it was time to talk about his grandest scheme to date: Mercury Towers.

The former Enemalta building, Mercury House, currently houses the operations team behind the Mercury Towers project, and Joseph leads me onto a courtyard which falls directly below the twist in the tower. The height is impressive. Joined by colleague Claire Gauci Borda, we move to another room within Mercury House to conduct the interview that has been very tastefully set up as an office. →

...I’M BUILDING THESE PROJECTS BECAUSE THEY ARE ICONIC. I WANT TO BE KNOWN AS THE BEST DEVELOPER IN MALTA.

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R E A L E S TAT E

I was curious as to how a local developer managed to bag the services of an internationally renowned architectural firm.

He stressed that the area needs to become safer, pointing out that the behaviour of certain establishment bouncers is wrong.

“When I bought this land, the first piece for €25.5 million and the second piece for €13.5 million, I knew that I had a special location and I knew that I had a lot of square meterage which isn’t easy to come across nowadays. Therefore, I sought the top 5 architects in the world, one of which was Zaha Hadid, and I recognised that they were special as they think outside of the box. Their buildings are a testament to this,” said Joe.

“If they don’t start improving by opening different outlets, having different management, different finishes—they cannot compete with us.”

“The next step was figuring out how to reach them; however, luckily enough architect Joseph Bondin’s friend knew one of Zaha’s friends, and that’s how the connection was made. My first meeting was with her CEO, and he warned me about their costs—I spent €11 million to bring Zaha Hadid here, and I did it because I wanted the brand name on my building.” “My next meeting was with Zaha herself, and that was special because she loves Mediterranean cities and oversaw the project. Three concepts were presented to her before she was satisfied with the outcome. She then presented the project to me, which happened just a short while before her untimely passing.” The background story is a great one and shows how useful it is to know people who know people, but those are staggering figures; Joe had already spent €50 million— and nothing had been built yet. One can’t help but wonder, what is the purpose of Mercury Towers? He explained that “Currently, people don’t feel safe coming to Paceville with children, especially in the evening; however, Mercury Towers is aiming to change that because we will have security staff brought in from Israel. We want people to come here with their families to enjoy the plaza with its shops and restaurants and feel safe doing so.” He went on to say that Mercury Towers will be “the beginning of the transformation of Paceville”, believing that the project will compel the surrounding establishments to upgrade their premises and what they offer to fall in line with a more family-friendly vision.

Joe mentioned that meetings were held with former Tourism Minister Konrad Mizzi and the St Julian’s Local Council regarding upgrading the surrounding streets, however, he says that, “they simply placed tarmac again. That isn’t a change. A change is by pedestrianising the roads from 7pm onwards, for example.” While the idea is certainly an idealistic one, it raises questions about one of the biggest problems that Malta faces—traffic and parking. Joe believes that the parking facilities offered by Mercury Tower, Pendergardens, and Portomaso Car Park should suffice to meet the demand; however, this isn’t the only tower being planned, as Paul Xuereb of PX Lettings applied to build a 25-storey tower, a few metres down the road which will contribute further to the congestion. The solution to this, he says, is to have different projects across the island because people will have more options of where to go. He mentions his tourism project for the Jerma Palace Hotel site saying that it will be a place that will attract people from all over the island, including Gozo—although he states that he doesn’t want to see these types of projects in Gozo and that it should be preserved. “The Jerma will be as important for tourists to visit as Valletta and Mdina.”

I SPENT €11 MILLION TO BRING ZAHA HADID HERE, AND I DID IT BECAUSE I WANTED THE BRAND NAME ON MY BUILDING.

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“This is the way that we can start diverting traffic to other places—although one project is not enough. Unless the government opens projects on the perimeters of the island, it’s going to be difficult to ease congestion; however, these sites are often opposed by environmental lobbies. We want sites that make sense for both ‘sides’.” The first phase of Mercury Towers that is the tower which houses apartments will be finished shortly, with the entire project looking to be completed and launched in March 2022. However, those people who have already bought their apartment will be able to use them as soon as Phase 1 is complete, he confirmed. He explained that the vision was to have a series of one-bedroomed apartments which were not intended for everyday living, but either for rental purposes or pads for business travellers. Certain investors have bought multiple apartments and created a larger living space; however, his reasoning is that if you’re local would you want to live in the middle of an entertainment area? Whatever the reason, the apartments have sold for over €10,000 per square metre! The project has been plagued by controversy due to the listed building of Mercury House which had to be incorporated into the design. Zaha Hadid architects managed to do so; however, not everyone is convinced that having the tower emerging from Mercury House was the right way to go about things. Joe describes Mercury House as “his baby” and also includes the vaults (which will be housing spa facilities) in that sentiment. Mercury House is considered to be the heart of the project as the lone historical building surrounded by modern, concrete structures. He believes that having the skylight in the courtyard from where you can view the twist in the tower will be one of the features of Mercury House and ascertains that the challenge of incorporating the house within the design encouraged Zaha Hadid. There is also controversy based on the size and location of the tower which Joe dismisses, saying that he used the footprint that was available to him and no more, with the only difference being that he built vertically rather than horizontally.

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Furthermore, he stresses that he bought the land with an approved permit for a tower. “If the tower weren’t big, it wouldn’t be an icon,” he says. “The façade alone cost me €17 million as it’s made from GFRC (Glass Reinforced Concrete), a material that has never been used in Malta before.” Ultimately, as a 43-year-old contractor, what is Joe’s motivation? He says that he enjoys working on what he calls “special projects”

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and not just regular apartment blocks which are built “to earn some money”. But he expresses his frustration at the government and environmental NGOs. They hinder his ideas, as by limiting the number of floors that he can build, this limits the number of units available which impacts the bottom line. Therefore, he cannot spend to have 7-star quality but must make do with 4-star quality. Joe explained that former Prime Minister Joseph Muscat had given the Jerma Palace

MONEY · 21

Hotel site a 100,000 sqm development density, but this was reduced to 65,000 sqm by current Prime Minister Robert Abela— a decision he disagrees with because he cannot have a branded project like Mercury Towers. “I started off to make money, but as time went by, I made enough money that I now don’t need to work anymore. I’m building these projects because they are iconic. I want to be known as the best developer in Malta.”

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INTERIORS

Veronica is a freelance writer and editor. She won the IGM Award for her work on Ethical and Positive Disability in 2016.

YOUR HOME IS YOUR WORLD

ISSUE 61

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WORK IT OUT: THE WORKSPACE

Steven Risiott at A Collective. Different fields of work may require different spaces or work environments. A separate room to use as an office seems to be the equation that fits most peoples’ brief and allows you to shut out work outside of office hours. That said the most important criteria for a workstation are natural light, thermal comfort, ergonomics and acoustics. These factors, as well as the introduction of plants, have been proven to contribute to your wellbeing and productivity.

We all know it is good to separate work from our private lives, but current circumstances do not always allow this. Not everyone has space even to separate these two aspects. But how can we create a workspace that is conducive to a productive environment? Light, a desk, a chair. For interior architect Claire Galea three things are most important: lighting, having a small desk, or at least, a comfortable chair. Make sure you have welltargeted light for your workspace. Aim for a naturally lit spot where possible, and when not, invest in a good desk lamp or a floor lamp you can angle to sit directly on top of your workspace. Next, try to fit in a small desk—it helps to have a dedicated zone that is used for nothing else but work. If absolutely no desk space can be included, then at least make sure you have a comfortable ergonomic chair. So, if you’re spending your working hours propped up against your dining table, it might be time to consider changing the seating to something you can spend hours on. Consider changing just the chairs at the heads of the table to something more comfortable; perhaps a similar style to your current dining chairs but with additional cushioning— padded seating, as well as armrests. Plants, a large window and no tv. “My studio is at home, so home is a normal productive environment for me,” says

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INTERIORS

Violet Kulewska Photo by Ali Tollervey artist and designer Violet Kulewska. The smart combination of a work and storage surface offers enough space for all those personal things essential to create a practical workstation. The workspace should be separated from other rooms, such as bedrooms and living rooms. This is because a separate room can make you more focused on your work. A workspace that connects to another room, especially the kitchen, will make it difficult for you to concentrate. I would suggest placing your desk near the window for air circulation and to relax your strained eyes. A room with lots of plants, a large window, and no TV is best. No hard and fast rule. There is no one size fits all solution, note Patricia Grech and

LIVING IT UP: THE LIVING ROOM It certainly also helps to give our living spaces an injection of new life, even more so as we spend more time indoors, even with winter coming up. What are the current trends we can adopt in our houses? Bring the outdoors in! Never was a trend more warranted—we’re missing the great outdoors, so bring them home, claims Claire. Decorate with indoor plants, enjoy taking →

…with many experiencing remote working and learning at home, multifunctional spaces have become one of the most relevant interior design trends Claire Galea Photo by Jamie Ian Genovese

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the time to learn how to care for them and watch them grow. If you lack green fingers, you can still give your space that natureinspired look through the correct use of colours and textures—think rattan or cane furniture, raw wood textures, blue and green colour schemes. These elements would help to bring that indoor/outdoor feel. A sustainable sanctuary. The idea of homeas-a-sanctuary has never been more vital, says Violet. Humans are feeling a greater need to be connected to nature. It’s all about materials with sustainability in mind—natural wood, recycled textiles, off-whites, tinted greys, earthy ochres, and tactile beiges and lots of plants. 2020 is not just about earthy tones and natural materials. The bold colours and clean-cut lines of modernism will also dominate interiors, fusing industry and craft, vintage and contemporary, high and low tech, colour and geometry. Quality space. “Our studio roots itself in contextual design and generally disregards stylistic trends to create timeless spaces,” note A Collective. Investing more time and effort in designing places to their full potential the first time around also avoids the need of having to upgrade a few years down the line thus reducing on waste and conversion costs in the long run. Spending more time inside has made people appreciate the need for quality spaces. Spaces with abundant natural light coupled with an exciting outlook and portion of outdoor green space do wonders for relaxation.

Steven Risiott

INTERIORS

CLOSE YOUR EYES: THE BEDROOM A good night’s rest is so vital to our wellbeing. Is there a way we should design our bedrooms to make them as restful as possible? Set the mood. Starting with the wall colours, don’t be afraid to go for darker, warmer tones—this will immediately set the mood, advises Claire. With a focus on the bed, avoid leather for the headboard and switch to softer textiles; make the bed as soft and welcoming as possible. Make sure your bedding is made of natural fibres, helping your body control your temperature comfortably as you sleep— Egyptian cotton or pure linen sheets. Never overlight your bedroom. Ideally, have lights set to two to three circuits so you can dim and zone lighting. Lastly, allow yourself the option to sleep in when you need to. Consider blackout window treatments: layer a sheer curtain in front of a blackout blind, giving you the option of allowing natural light in during the day, but shutting it out completely when necessary. Natural inspiration and playfulness. It’s interesting to see patterns unfolding

Patricia Grech

ISSUE 61

that address our needs as a society and environment even more. Many of us look for furniture and accessories that mimic natural elements like wood, rattan, warm colours, greenery to create a calming environment inside our houses, says Violet. We need an absence of noise, soft lighting, warm colour schemes, blackout curtains, soft music and no mobile phone to create a calming, restful and peaceful bedroom. “I think the era for simplicity in a bedroom is over and people are now looking for natural inspirations, but also playfulness. The use of different textiles, patterns and plants could add a lot of character in our bedrooms.” Clear the clutter. Dim artificial lighting, softer textures, sound-absorbing materials, clean and clutter-free environments help to create a more tranquil environment according to A Collective. The wise use of the space we have is undoubtedly the way to go when designing restful but also homes that are conducive to productivity. Well-planned storage space is a must in any living space, but even more so in a space that also doubles up as a workspace, says interior architect Claire. Indeed, with households experiencing remote working and learning at home, multifunctional spaces have become one of the most relevant interior design trends, comments Violet. “Yet while there is much we can do when it comes to architectural design; there is a limit to what one can achieve solely through interior décor”, note A Collective. “The local building industry needs a complete overhaul with proper building standards. The profession needs to understand and appreciate its responsibility in shaping space which directly affects the way people live their lives. Beautiful spaces are derived through well thought architectural form and should not be considered as separate from each other.”

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PROMO

ISSUE 61

DO TRY THIS AT HOME!

Photos by Sean Mallia

The saying goes ‘Don’t try this at home’. Well, for this time only, we suggest you try it. MONEY speaks to Nick Vassallo, project and construction manager, and Philip Farrugia, architect and interior designer, at Domos—an interior design and project management company that converts properties into luxurious and beautifully designed spaces.

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PROMO

M Where did the name Domos come from?

remarkably sophisticated vision and refined tastes, we managed to achieve a unique balance, ultimately creating a peaceful flow throughout the entire luxurious property. This project is one of many residential properties we have proudly accomplished to date.

N Deciding on a name is always quite a challenge. We wanted to find a catchy name that would be not only easy to use within the business field, but also be relevant to what we offer. Initially, the name was a play on words related to providing a professional SERVICE for interior DESIGN and project MANAGEMENT uniquely and seamlessly, which derived from our core business philosophy. We also wanted our company name to be associated directly to our specialisations which are high end residential and commercial properties. So, the word ‘DoMoS’ which translates to ‘houses’ in Latin fitted in perfectly, finally establishing our company name.

We have also had quite a few significant projects in the commercial field, including collaborations with firms such as well-known betting companies, gymnasiums, bars and clubs, restaurants and lidos.

M What is the vision and background of the company? And how did this come to be what it is today? P The company was established in March 2016, through the collaboration between Nick Vassallo, a project and construction manager with more than a decade of experience in the field and Philip Farrugia, a young architect, who focuses on detailed design and high-quality interiors. They teamed up to offer their collective services to a niche clientele looking to take their project to another level by offering clients an overall service experience towards their final scope of creating their desired environment. Initially, what started as a two-person team from a single room in Valletta, progressed towards taking over the offices next door, and further expanding to eventually outgrow this space. In March 2018, Domos relocated to their current premises in Balzan, where their design and management studio is currently operating from. M How does your firm stand out from the rest when it comes to interior design? How do you leave your mark? P The process is handled by a team of qualified professionals throughout, where each phase is well-managed with extreme attention to detail to achieve the ultimate goals required by our clients. We are confident in our ability to communicate with our clients to obtain as much information as required to turn their vision into reality. Only after we fully understand our client’s

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We feel fortunate to form part of a sector that is extremely diverse, not only due to the ever-changing design elements but also a vast client base each with its own needs, wants and ideas requirements, interests and style, can we give them a solution tailored specifically for them. It’s finding the balance between upscale design and practicality that compels our clients to use our services—finally managing to create the clients’ unique space, which at times would only require those few personal touches to make the house their home. M Can you mention a project which is significant for your firm in terms of accomplishments? N One of our most satisfactory projects is a residential apartment recently completed in Valletta. We converted a then rundown, dark and gloomy apartment in the familiar Vincenti Buildings into a gem of a property for our client. Together with the clients

M The fact that most customers are turning to eCommerce websites to shop online leaving an impact on commercial and retail design jobs. Are such design jobs on the decline as a result, or is there still a good demand when it comes to engaging firms like yours to handle the design of commercial/retail outlets? P The eCommerce world does have its impact within our sector as it allows anyone to tap in and self-design space effortlessly and from the comfort of their own home. The critical part where we believe we can be beneficial is the implementation and fine-tuning the elements to work together. In this industry, achieving a balance between quality, time and cost is the trickiest factor. In our opinion, this is where a well-trained eye is useful—taking nothing away from the advances in the eCommerce world, which we too occasionally use to our clients’ advantage. There have been instances where a client requests a specific brand which is not available locally and therefore; we have used eCommerce to source accordingly. M What keeps you motivated in such a competitive industry? N We feel fortunate to form part of a sector that is extremely diverse, not only due to the ever-changing design elements but also a vast client base each with its own needs, wants and ideas. Our team is continuously craving new challenges which each project creates at every phase of the process, from the innovation of unique design features to coming up with quick and efficient solutions whilst managing the works on site. For us, this is what keeps us passionate and makes each new project just as exciting as the last.

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ARCHITEC TURE

ISSUE 61

Eco-sustainability is the keyword for this significant project by AP Valletta. MONEY interviews executive director Konrad Buhagiar and design director Charles Sciberras on GO’s new technical centre in Bulebel. M In a bid to compensate for the lack of greenery in urbanised localities, how important is it these days to have projects which include urban greening in designs? KB Inexplicably, while urban areas at street level, with their traffic, fumes, friction and consequent hubbub, are exorbitantly expensive, the same space at higher levels, such as balconies, terraces or even the vertical face of building facades, open as they are to the sun, fresh breezes and fantastic views, remains underutilised. We are all too familiar with the view of vacant rooftops that have become the repository of dilapidated water tanks, rusty air-conditioning units and random accumulation of trash. So, if the urbanised landscape of Malta lacks green spaces, the individual private buildings themselves can compensate for this by including rooftop and facade designs incorporating planted and shaded areas. These can facilitate ambient air temperatures by as much as 15 degrees in the heat of summertime and significantly reduce the

winter chill factor while adding to the visual richness of urban landscape as well. At AP Valletta, we are very aware of the hidden potential of these building elements from a climatic and visual point of view. M Sustainability has become an undeniable aspect of businesses these days. How will the Go Technical Centre finished project be eco-sustainable? CS Eco sustainability has been the main driving force behind AP Valletta’s design philosophy for the new GO Technical Centre at the Industrial Estate of Bulebel in Żejtun. The complex comprises five main blocks, including two office blocks, a purpose-built data centre and a warehouse building. A brise-soleil consisting of Building Integrated Photovoltaic panels shields the south-facing facades of the office buildings from direct solar heat gains. Solar analysis software was used to map the solar energy that falls on the buildings parametrically. This led to the creation of a pixelated pattern with the BIPV

panels shading those areas with the largest solar gains. Voids in between the panels allow light to enter the office floors in strategic locations creating a delicate balance between the provision of adequate natural light, the reduction of glare and the enjoyment of the surrounding views by the users of the building. All the external envelopes of the buildings are adequately insulated to offer thermal comfort to the buildings’ occupants. The proposed data centre, the largest of its kind on the island, has been designed to reduce heat gains and losses through its skin. The gateway building provides the heart of the project, a low-lying building almost wholly covered with a vertical garden system spilling over into the central court at the core of the development. The green walls

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priorities at European level and to offer a more efficient service in terms of assessment of environmental performances. For the test, we focused mainly on: use of energy performance, construction and demolition, waste materials, water consumption, indoor air quality, time out of thermal comfort range, all at design stage only for now.

ECO SUSTAINABILITY HAS BEEN THE MAIN DRIVING FORCE BEHIND AP VALLETTA’S DESIGN PHILOSOPHY FOR THE NEW GO TECHNICAL CENTRE are made of local endemic plants and create shade over the building’s external walls. The gateway building is connected to the office blocks and data centre by a series of highlevel bridges that provide healthier routes to the employees who can cross from one area to another while benefiting from the southfacing valley views. M What challenges, if any, are you facing with this project? CS We are fortunate to work with a client that shares the same sustainable philosophy. Understanding the importance of ecosustainability in the early stages of the project has dramatically reduced the challenges usually associated with promoting ecosustainable designs. M Is the development of the data centre part of an EU-funded project? CS The project is not receiving any EUfunding, but it is one of the 136 buildings across Europe, implementing the innovative EU Level(s) indicators on its design. Level(s) is the new European indicators developed by the Joint Research Centre and hundreds of different organisations, which aim to

address: greenhouse gas emissions, resource efficiency, water use, health and comfort, resilience and adaptation, and cost and value. The programme provides a common EU approach to the assessment of environmental performance, focusing on offices and residential buildings, both new and undergoing major renovation. We submitted the GO Technical Centre and a newly built villa, as case-studies for the categories mentioned above. This allowed us to test our buildings’ impact according to sustainability

M Any similar projects in the pipeline? KB All AP Valletta’s projects incorporate designs that endeavour to exploit the site as much as possible to provide thermal and visual comfort. This would imply studying the orientation of the building and using traditional forms of climate control devices such as pergolas, courtyards, louvres etc. to let the sun in the winter and the cool shade and breezes in the summer. Greening and landscaping traditionally neglected spaces such as the rooftop and facades are also high on our design agenda. The roof terrace of an 18th-century house in Valletta works with the passage of the sun’s rays on the vertical walls, creating a pixelated play of solid and void to allow the sun in the winter months and exclude it in summer. At the same time, a body of water that becomes a swimming pool insulates the space below from the sun-exposed roof. A veranda in a house we recently built in Tal-Ibraġ faces south, allowing the low winter sun to hit the external façade of the bedrooms while providing shade during the summer months. These considerations, together with extensive greening wherever possible, contribute to the thermal efficiency of the building and its environmental sustainability.

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S U S TA I N A B I L I T Y

Victor is an investigative journalist with more than two million words and hundreds of pictures to his name, in books, magazines, and newspapers in every corner of the world.

ANOTHER BRICK IN THE WALL?

Five storey building subject to constitutional lawsuit in San Lawrenz is only 50 metres behind church

The proposals of mayor Noel Formosa to save the community in San Lawrenz may be controversial—he even broaches the idea of slight expansion of development zones—but he feels that desperate times call for drastic measures. Victor Paul Borg investigates. “Although the population of San Lawrenz is increasing according to the electoral register,” the long-time mayor explains, “in reality, the

living community—or those who contribute to the community—is shrinking. If we look at the sustainability of the school, for example,

it may not be sustainable due to the shrinkage in the living community and decrease of pupils.”

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As the living population is shrinking, the density of habitations is increasing, with an ever-increasing proportion of properties— mostly flats—owned by weekenders who reside in Malta throughout the week. Rows of flats line parts of the main streets of the small village on the western fringes of Gozo, and the village now also has a block of flats which villagers refer as “the high rise”—a five-storey block of flats behind the church. “To have 5-storey flats in the village core of rural villages around Gozo is something that will have a very negative impact on the Gozitan topography,” Formosa said. “The main problem is that we are creating shabby flats that are not family oriented but once again to make easy money which in my opinion, is not sustainable.” “We cannot have all of Gozo become like Marsalforn or Xlendi, at least we have to respect the rural villages that maintained their character,” he added. “I want to make it clear that we are not against having familyoriented buildings in the developing zone, but we are against having more buildings oriented solely for tourism.” Five-storey blocks of flats in Gozo became possible five years ago when the Planning Authority changed the policy on heights of building in a document known as DC15. Before that, the permissible limit was a height of three floors and additional recessed floor; DC15 removed the height limit by storeys and changed it to a height limit by measure, or 14.6 metres. This prompted developers to start building blocks of flats with reduced floor height, and that way fit five stories in 14.6 metres. Five-storey blocks of flats have now been rapidly sprouting throughout Gozo’s towns, a boom on the back of strong demand for flats by Malta-based residents. These flats are a pad for weekend visits, as well as an investment. Property prices in Gozo have been rising steadily, although industry sources are increasingly talking about risks associated with an oversaturation of speculative property investments in a destination that remains seasonal. There is also the fear that these flats will erode Gozo’s attractiveness,

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primarily through the dilution of characteristic town fabric and community, and in turn, become an investment bubble. Thousands of flats have been built in Gozo over the past several years, and Five-storey blocks of flats are ruining the quintessential Gozitan thousands more townscapes of parish churches rising above village houses are currently at the planning or building stage. Over the same period, the last census if families buy such houses as their residence. by the National Statistics Office shows that He also proposed greater flexibility on rules the number of households in Gozo increased concerning the rehabilitation of old buildings by 900. to encourage more conversions by families. The mayor of San Lawrenz, as well as other mayors in Gozo, lament that councils already must grapple with weekend problems concerning parking, traffic congestion, and rubbish collection. Weekend visitors do not tend to separate waste; they put everything in black bags and take them out of Sunday afternoons, causing rubbish collection headaches to councils. In a letter to members of Parliament two years ago, Formosa wrote that the price of developable land or empty houses in San Lawrenz has risen to the point where only “speculators have the opportunity to buy.” He then proposed that financial incentives are given to sellers and buyers of vacant houses

We cannot have all of Gozo become like Marsalforn or Xlendi, at least we have to respect the rural villages that maintained their character

He concluded by “drawing attention to the fact that the attractiveness of our country is found in communities that are scattered throughout the country, especially those localities that have retained an identity.” A year ago, Formosa then proposed the council for the commissioning of a blueprint for development in the village. The proposal was based on the premise that development would be oriented towards family homes rather than holiday pads, and at the same time protect the topographic character and skyline integrity of the village. He also said that areas could be identified where development zones can be extended marginally, particularly by designating gaps of undeveloped land in-between existing ribbons of development as developable land. Yet the council shied from supporting the proposal after a lengthy discussion, mainly because some members, according to the minutes, saw the exercise as potentially conflicting with the role of the Planning Authority as well as an imposition on people’s free will. “The idea would have been to consult with people, check that the development zone is sustainable, and see that buildings blend with the character of the town,” Formosa said, defending his proposal. “A report drawn up by experts after consultation would have helped us identify the needs of the locality. It could also have served as a model for other towns in Gozo.”

bloom@bloomcreative.com.mt

We build remarkable brands. To view a selection of our best work, visit bloomcreative.com.mt

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PROMO

ALLIANCE SELECTED PROPERTIES SELL WITHIN 22 DAYS Soon after their new brand launch in July,Â Alliance Real EstateÂ introduced an innovative package of services that is taking the property industry up to a new level. Here is how, between August and September, six properties were sold within 22 days of being listed on the market. When it comes to selling real estate, you need to have three things in place. Firstly, you need a reliable valuation - priced too low, the property may sell very quickly, but you could be losing out on higher earning potential. On the other hand, if it is priced too high, you could end up stuck with it until you decide to lower the price to a more realistic level. Secondly, you need good quality photography and media to show off your property and make it stand out from all the others on the market. Thirdly, you need an ambitious team of dedicated people connected with lots of potential buyers looking for properties just like yours. Alliance promises all this, and judging by the results so far; it seems they have developed an efficient solution with this service package. Alliance Selected properties are carefully evaluated by a panel of expert appraisers,

platforms, enhanced SEO copywriting is used, and results are monitored on an ongoing basis to tweak things where necessary.

referring to current market trends and updated data from many similar properties. The owner is then presented with the suggested valuation to decide the final asking price. The place is then prepared for sale with a set of presentation assets that may include top quality photography and video, a 3D walkthrough with dollhouse view and a floor plan to make remote viewing more effective and super convenient. This gives buyers a much better picture of the place and avoids wasting time with many viewings that lead to nothing. During the current Covid-19 pandemic situation where everyone is trying to reduce unnecessary social contact, this has become even more necessary. Then, using these assets, Alliance people build a website landing page and invest substantial advertising budgets across different media to reach thousands of potential buyers. Effective tailor-made campaigns are being run on different media

To ensure owner satisfaction and that properties remain top of mind with hundreds of advisors meeting new potential buyers every day, Alliance Selected is managed by two dedicated officers. Arianne Borg is an accountant by profession and an awardwinning estate agent with years of valid experience in real estate listings for sales and auctions. Kevin De Leonardo is another top-performing senior advisor, with almost two decades of valid experience and several prestigious awards under his belt. Arianne and Kevin are supported by other senior property advisors with vast knowledge and experience, and a fully updated database of thousands of properties in different localities.

For more information, email selected@alliance.mt, call Arianne on 7900 5544 or Kevin on 9948 7331 or visit http://bit.ly/allianceselected to view some of the recently selected properties.

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S U S TA I N A B I L I T Y

ISSUE 61

JP is a founding partner at Seed, a boutique advisory practise. An economist by profession, he is also a visiting assistant lecturer at the University of Malta.

HOMING IN Do we need to transform the real estate sector where all stakeholders should engage in a discussion to respond to today’s needs and future challenges? JP Fabri believes so.

There is no doubt that the real estate and construction industry have been significant contributors to growth over the past couple of years. Various projects have mushroomed over the island, providing jobs for thousands of foreigners who migrated to Malta, and in turn, these all contributed to the national economic activity. This construction boom has been supported by laxer permit issuance, supportive tax measures and a demand that has been fuelled part by increasing numbers of foreign workers and part by speculation. Over the past years, as the amounts of tower cranes kept peppering the skyline, the debate started to shift more towards the quality of growth, the safeguarding of the environment and the future of the market. As COVID continues to cause economic distress and to bring to the fore the debate on our collective future and especially the economic model, we need to collectively reflect on what future we envision for several sectors, including real estate and construction. Dubbed as the great reset, it is time that a serious, non-partisan and national debate is held on the transformation of our industries. As a small island state, we have been focused on diversifying and attracting new economic sectors. However, rarely have we sat down to chart a way forward for the existing sectors given the various challenges that they face and will face shortly. This exercise, dubbed industry transformation mapping, is something that the country needs to engage in to reassess, revalue and rethink the strategies for the future. This needs to

be pursued for all traditional and existing sectors including manufacturing, tourism, construction and real estate amongst others. The construction and real estate sector has been one of the most traditional industries in Malta. Our history as an island can be seen in our relationship with our stone from the temples to modern-day buildings. Construction and real estate have always been seen as a haven for investment purposes. Over the years, many people have invested their savings with the hope of multiplying them through real estate transactions. This mentality has supported the growth of recent years. The industry requires an innate ability to transform itself to remain an economically important sector but to remain futureready. The real estate industry is facing various challenges. New technologies have the potential to disrupt existing business models and traditional jobs. Consumers’ expectations are also rising—they want services which are more convenient, transparent and reliable. Also, environmental concerns are requiring buildings and building methods to be more reflective of this and to embrace the broader environment. A process needs to be initiated to transform the real estate industry so it can continue to grow and provide good jobs and economic value to the Maltese economy. The Government, together with stakeholders from across the entire real estate value chain, including property developers, contractors,

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

building material suppliers, architects, planners, lawyers and notaries, real estate agencies, facility managers and technology firms need to embark on a consultative journey to ensure that this sector becomes genuinely future-ready. This process needs to have several pillars on which it will be based including the ability of the sector to embrace innovation and leverage technology; to become greener as a sector and to strengthen the professionalism and the upskilling of the workforce.

S U S TA I N A B I L I T Y

and dilapidated buildings are eating away at the beauty of our towns and villages with the added possibility of creating ghetto communities. The Government needs to engage in ensuring that such properties are restored actively, and regenerated and fiscal incentives, including taxing abandoned properties whilst giving tax credits or schemes to finance the restoration and regeneration should be considered. The

The state of properties and buildings has shown the importance that these are well maintained to ensure optimal building performance and sustainability. Ease of

The Government, together with stakeholders from across the entire real estate value chain, needs to embark on a consultative journey

maintenance will become increasingly important as our city ages, and as we continue to build new buildings and infrastructure. Current procurement practices focus more on reducing cost than enhancing service delivery. Therefore, an emphasis towards smart new buildings needs to be started which will allow facility management companies to innovate and invest in solutions that include real-time monitoring, predictive maintenance, and automation that improves a building’s operational efficiency. Here, agencies like Tech.mt and MCST should play a pivotal role to ensure that research, development and technology innovations permeate all economic sectors. Focus also needs to be given towards regeneration policies. A lot of abandoned

Government should consider embarking on a broad regionally focused regeneration effort as part of a broader economic recovery strategy in the post-COVID world. We also need to leverage technology so that property transaction services can be faster and more efficient. Here, the Government needs to look at digitising the property register to support this initiative which will enable property-related firms and professions to automate administrative processes such as time-consuming due diligence checks. The so-called blockchain island vision needs to start focusing on key areas in which registries and governmentdata are digitised and migrated on blockchains which will support other cross-national initiatives such as efficiency,

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productivity and due diligence. The focus needs to be on automating tasks such as property searches, contract templates and permit conditions so that the private sector can tap on the technology enablers and tools that should be provided by the Government to innovate and provide end-to-end and seamless services to consumers. The construction and real-estate sector also need to be seen as essential components and enablers of a greening strategy for the economy. The shift towards greening the economy is being given a more significant impetus due to COVID, and the Government needs to ensure that this sector becomes a key enabler. The utilisation of more environmentally friendly building products and methods needs to be a start. Integrating other concepts such as green roofs and walls will be another step in the right direction which will not only ensure green lungs in villages and towns but will also bring about tangible benefits to the tenants including a better-insulated building. Finally, industry transformation needs to be supported by a skilled and professional workforce. Here, the industry needs to work together with educational institutions to strengthen the continuing education and training framework to build up the talent pool across the industry from builders to M&E technicians to facilities management personnel to property valuators to real estate agents. This needs to be hand-in-hand with an increased focus on enhancing health and safety across the industry. Too many lives have been lost in the name of construction. Malta’s biggest challenge across all sectors is to be future-ready. Complacency is not an option. Industries need to continuously transform themselves in other to respond to both the current but more importantly, future challenges. COVID-19 has given us a unique opportunity to sit down and chart a long-run national vision based on a broad industry transformation exercise. The construction and real estate market is ripe for such transformation. It could continue supporting both the economy and the environment if it had to embrace its greener side, become more technological in service-delivery and ensure the upskilling of the current and future workforce.

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PROMO

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FRANCHISING WITH

QUICKLETS & ZANZI HOMES When considering investing in a new venture, various business models offer diversified benefits. Franchising is one enticing option that brings along an array of opportunities. QuickLets and Zanzi Homes have mastered this offering over the years. In this article, we look at why franchising might be the option you are after.

the matter. Today, the ‘PropTech’ brands have grown into the largest real estate network on the island. With over 30 offices and a team of over 500 property specialists, new investors joining the franchising network can feed upon the knowledge, expertise and motivation of a group of people driven by innovation, a diverse and embracing culture and the inspiration to give back to the community.

Why Franchising?

Why Real Estate?

At times, starting a new business might feel scary and could bring along several questions and doubts. Is this the right industry to enter? Which marketing will work best? How long will it take for my new business to get noticed and will customers like it? Franchising with an established brand offers the answers to all these questions. One of the most vital benefits of joining a franchising network is the luxury of benefiting from experience that the franchisor built over the years. The brands they offer, such as the QuickLets and Zanzi Homes ones, have already established themselves in the industry. They know which kind of marketing works best for them; they know what their clients expect from them, and most importantly, this is backed up by years of industry intel and data. By choosing this option over venturing into the dark solo, you benefit from starting a million steps ahead with a tried and tested roadmap to success.

Unless Armageddon strikes, history shows that real estate is always a good idea. Being one of the main drivers of the economy, in times of national distress, it is likely one of the industries the Government would protect and stimulate first. We have seen this happen repeatedly. The most recent example is fiscal benefit the Government introduced to safeguard property sales during the pandemic. Through the implementation of a reduction on property tax and stamp duty, the real estate market enjoyed one of its best months last July, with a total value of over €330M being registered through new Promise of Sales. Very few industries can claim such success.

Not to mention the 37,000-owner base with 82,000 plus listings entrusted to the group to sell and rent out. And if this wasn’t enough, QuickLets and Zanzi Homes offer you the 3,000 virtual agents regularly sending through fresh leads to increase your chances of making money.

Why QuickLets & Zanzi Homes?

For more information about franchising with QuickLets and Zanzi Homes, visit www. quicklets.com.mt or www.zanzihomes.com or call Steve on +356 99218666 today.

There is strength in numbers, and QuickLets and Zanzi Homes built a healthy scorecard on

QuickLets and Zanzi Homes are inviting you to become a Franchise Owner today. Offering one of the largest online property databases, a cutting-edge backend system, continuous training by both local and international speakers and an array of team building events to bolster unity, the only thing between you and a better future is a phone call.

38 · MONEY

ISSUE 61

ECONOMY

Jordan is an economist and a portfolio manager for a local asset management company.

COVID-19 AND ITS BEARING ON THE REAL ESTATE MARKET Let’s be frank—the unprecedented situation brought about by COVID-19 put the entire globe to its knees. Its anonymous emergence surprised many to how one should approach such uncertainty, both from a health and economic perspective. Jordan Portelli explains.

Personally, this new phenomenon conditioned the way we socialise, the way we work, the way we consume, and possibly many other habits to which we had to adapt accordingly. Inevitably, these changes in habits have negatively impacted the economy globally, with selective sectors being hit more than others. Domestically, tourism was the harshest hit, however other sectors, such as real-estate, are feeling the pinch too, given that signs of cracks were already showing prior COVID-19. Over the past years, Malta registered above-average growth, primarily due to significant foreign direct investment the country managed to attract. This inbound in investment had a positive impact on a diversity of sectors, amongst which was the real estate market, with the letting market being at the forefront in registering exponential growth. Indeed, many investors reaped the benefits of this growth, as returns were more benevolent than those being offered by financial markets, given the current low yielding environment. The latter proved to be a source of support for many to leverage themselves and invest in the

property market, which continued to uptick prices. Before COVID-19, the property market was possibly showing signs of a peak, following a record year of 12,885 approved application in 2018. Despite in 2019, the number was on the high side (12,484), a decrease of 3.1% was registered. In all fairness, the exponential trend of approved dwellings over the past years was a clear sign that eventually supply will overtake demand. Thus, the relatively stabilisation or softness in prices comes to no surprise. Moreover, overpriced properties have experienced a price adjustment. COVID-19 inevitably piled more pressure on the property market, predominately on the letting segment. As previously mentioned, the uptick in pricing was brought about by the remarkable influx of foreigners working locally, which effected the long-let segment positively. Also, the high demand of the shortlet business, to which many locals found to be another attractive source of investment, is feeling the pinch. COVID-19 has impacted the former given the uptick in unemployment, mainly in the tourism industry with many

foreigners previously employed within the sector re-immigrated. The latter was harshly conditioned by travel restrictions, as inbound tourism hit its record lows in history. A pinch is also being felt in the office space letting segment. As said, COVID-19 has changed the way companies view the remote working proposition. Over the years, such ideology was a taboo, predominately by local companies. However, as COVID-19

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

emerged, remote working was not an option but a necessity. Despite many might be still sceptical, others have seen an opportunity to induce the idea in the form of a fringe benefit, but ultimately also reducing their operational cost remarkably. An efficient example is materialising within the gaming sector. Several gaming companies are transposing the idea into practice. Many have already downsized their office space remarkably and are offering their employees to work three days remotely, and two from the

MONEY · 39

ECONOMY

office. This will reduce drastically office rent, given the smaller office space, in addition to the running costs of the office which usually are relatively high. Undoubtedly, these strategic decisions are and will continue to pressure office rent to the downside. Over the years many investors considered office rent as a long-term investment, with notable investments made in strategic locations. This has possibly increased supply remarkably, and now the risk is not solely the possibility of losing existing foreign direct investments, due to possibly our jurisdiction’s reputational

the period of the said structural issues, predominately the supply aspect. Moving forward, one should be conscious that a sustained slow down within the property sector, predominately within the rental market, can have severe implications towards the broader domestic economic spectrum. It’s no secret, investors who leveraged themselves and have serviced their ‘buy to let’ loans through a certain level of rental income, might be in a tight situation if they fail to retain previous rental income

DESPITE SHORT-TERM FIXES, SUCH AS THE RECENTLY ANNOUNCED REDUCTION IN STAMP DUTY, WHICH WERE IMPORTANT FIRST-STEPS, MORE STRATEGIC IDEOLOGIES WHICH WILL INDIRECTLY IMPACT THE PROPERTY MARKET SHOULD COMMAND THE GOVERNMENT’S AGENDA risk and other factors, but due to a change in a core habitual. In June, as part of its post-COVID-19 recovery plan, the government has announced a stimulus package purposely targeting the property market directly. In summary, the stimulus package is through a reduction in stamp duty, and it benefits both the buyer and the seller. The original five per cent duty for buyers has been reduced to 1.5 per cent, while the withholding tax for the seller has been reduced from eight per cent to five per cent. The scheme is applicable for contracts to be finalised from June 2020 until 30th April 2021. Indubitably, such move is benevolent and will give some pace to the industry in the short-term. That said, to sustain the property market, other measures are imperative over the longer term. Structural issues were hazardously in place before COVID-19. The viral infection has amplified and shortened

levels. In turn, this will possibly have severe implications for the banking system through an increase in non-performing loans. Thus, given its notable contribution towards domestic economic growth, in addition to the threat of hindering the economy in the future, other mechanisms for long term sustainability are imperative. Despite short-term fixes, such as the reduction in stamp duty (the reduction scheme of which is set to end in April 2021) were important first-steps, more strategic ideologies which will indirectly impact the property market should command the government’s agenda. The first-mover advantage of law enactment within the gaming industry way back in 2004 and the more attractive tax regime, are clear past strategic examples which contributed immensely to the property’s market growth. Now more than ever, more strategic thinking is crucial towards the sustainability not solely of the property market, but the entire domestic economy per se.

40 · MONEY

ISSUE 61

A N A LY S I S

Keith Galdies is CTO at Djar, a digital platform which sets out to help both parties by investing in technology that efficiently processes agency listing in real-time.

Keith Tanti is an economist at EY Malta, who is assisting Djar in the data analysis.

CAN MALTA’S PROPERTY MARKET WEATHER THE PANDEMIC? It stands to reason that the impact of the coronavirus—wage cuts, potential business failures and job uncertainty—would make many people cautious about making the most significant investment of their lives, buying a home. Keith Galdies, CTO at Djar, and Keith Tanti, an economist at EY Malta, give a detailed analysis on the current property market. The disruptive impacts of Covid-19 1

on the Real Estate lifecycle

Malta escaped the last global recession relatively unscathed. Yet in countries where it hit hard, the US for example, real estate was at the epicentre of the carnage with house prices falling by one-third. This time around, Malta's economy will not be immune, given that a substantial share of the Maltese economy is directly and indirectly linked to the tourism sector. A sharp recession is expected, with S&P forecasting Malta's economy to contract by 8% in 2020 in its Global Ratings report published in September. Yet so far, Malta's property sales market appears to be resilient to the economic forces that might pull prices down despite the various disruptions around the real estate life cycle1. In July, the Malta Developers Association announced that it recorded 1,600 promises of sale with a total value exceeding €330 million, making it one of the best months since 2017. The following month it announced that August was the best result for property transactions in the past four years, with more than 1,300 promises of sale finalised and registered with the

authorities, with a combined value of over €300 million. The lack of detailed official data makes it difficult to ascertain why. Contributing factors may include that contracts delayed due to COVID-19 are now being completed. COVID related incentives for the property market which included a reduced stamp duty from 5% to 1.5% up to the first €400,000 of sale, and a reduction in withholding tax from 8% to 5% for sellers, are expected to have given a stimulus to the market. Djar.com, in collaboration with EY, have sought to leverage AI and data analytics solutions to enable real-time insights into the residential property market. The Djar-EY property market report published in June evidenced a slowdown in the appreciation of property asking prices between 2019 to 2020 Q1 compared to what was observed in previous years. More recent data, up to September 2020, indicates a situation of relative market stability over the crisis period. The data shows that the period →

The Covid-19 crisis has impacted all the stages of the real estate cycle, and consequently, a wide spectrum of individual and business stakeholders involved at each stage. Acquisition— COVID-19 impact: − Physical viewing of assets by buyers interrupted/hindered due to lockdowns and movement restrictions. Same applies to real estate appraisers engaged to perform asset valuations for transaction purposes. − General uncertainty surrounding COVID developments reducing investors’ appetite/willingness to finalise transactions. − Securing new debt finance for transactions could be more challenging due to the COVID scenario/disruptions. − Relevant submissions to the registry and other authorities interrupted/delayed (e.g. sales agreements).

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

M O N E Y · 41

A N A LY S I S

Construction companies/ workforce Valuers

Ac qu i

Designers/engineers

t en pm

Investors and other financial sponsors

De ve lo

ion sit

Local authorities

Suppliers and service providers Financial sponsors Local authorities

e nt

RE lifecycle

−

Face-to-face meetings/negotiations between transaction parties restricted. − Other due diligence activities also hindered by restrictions. Effect: − Postponement/delay of acquisitions, resulting in limited transaction activity. Development— COVID-19 impact: − Disruption of supply chain relating to construction materials (logistics & actual production). − Design process partly disrupted due to site visit restrictions. − Obtaining new financing for development purposes more challenging. Effect: − Delays in the completion of construction/handover of units under construction. − New projections in the pipeline put on hold. − Possibility of higher construction/ development costs due to delays/ disruption of activities. − Necessity for cost cutting/control

/ ip

Valuers Local authorities

Buyers

Agents

al Ow

h er s

activities of relevant stakeholders to address reduced revenues/cash liquidity pressure. Ownership/Management— COVID-19 impact: − Tenants face liquidity pressure, preventing them from meeting payments and other contractual obligations. − Liquidity pressure on owners, preventing them from serving financing obligations/carrying out planned/agreed capital expenditure (e.g. refurbishments). − Property management activities disrupted. Effect: − New/existing tenants attempt to renegotiate key contractual terms (rent-free periods, lease durations, lease amounts etc.). − Cost cutting/control activities of relevant stakeholders to address reduced revenues/liquidity pressure. Disposal— COVID-19 impact: − Disposal efforts hindered by COVID restrictions, as presented under

Financial institutions Tenants/landlords Property management companies

‘Acquisition’ box (viewings, duediligence, valuations, submissions etc). − Reduced demand due to COVID related uncertainty/lack of funds. − Opportunistic buyers may seek to take advantage of the crisis and transact at reduced prices. − Disposal efforts may be put on hold by some vendors to protect sales value. Effect: − Reduced number of transactions due to limited demand and transaction closing issues. − Potential buyers may demand additional discounts to compete transactions. Property valuations distorted by the COVID scenario, exerting further downward pressure on prices. − Vendors not compelled to sell likely to resist such pressures, increasing bidask spread and reducing transaction volumes further. − Cost cutting/control activities of relevant stakeholders to address reduced revenues/liquidity pressure. − Vendors/agents adapting their sales and marketing efforts to accommodate the COVID scenario.

42 · MONE Y

ISSUE 61

A N A LY S I S

Average €/sqm asking prices 2017 Q1 — 2020 Q3

Northern Harbour

Northern

Southern Harbour

South Eastern

Western

Gozo

€3,000 €2,800 €2,600 €2,400 €2,200 €2,000 €1,800 €1,600 €1,400 2017 Q1

2017 Q2

2017 Q3

has so far been generally characterised by a halt in property asking price changes, albeit with some different trends across property segments. The infographics being presented with this article visualise some of the insights provided by the latest Djar data. Whilst, the overall average asking price for apartments has remained at a similar level to those at the beginning of the year, the average price for houses increased to the highest level recorded. This could reflect changing market demands over the Covid-19 period, with estate agents frequently highlighting that

2017 Q4

2018 Q1

2018 Q2

2018 Q3 2018 Q4

2019 Q1

2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3

more buyers are seeking outdoor space. Average prices/sqm have remained generally stable across recent months. The last quarter recorded increases across the Northern and Southern Harbour regions, and most notably Gozo. Rates in the other regions are mostly unchanged or have declined marginally since the start of the year. Average asking prices may, however, mask developments in specific market segments, and this is where new technologies and data analytics mainly come into play. In addition to tracking average asking prices, Djar and

EY also track asking price movements on individual listings. Zooming in on this data we note that 92% of properties in Djar's data-set which remained listed over the last quarter had no change in price. Of the 8% that did change in price, 72% decreased their prices by an average reduction in the price of -4.4%, with the largest average decreases over the last quarter being registered in the localities of Kalkara: - 8.1%; Paola: -6.9%; Balzan: -6.5%; Zebbug: -5.8%; St. Julian's: -5.4%. On property-by-property analysis, over the same period last year, we noted that 88% of properties which remained listed had

Distribution of price changes by region (property-by-property analysis) Year-on-Year (left) vs Last Quarter (right) Gozo

57.23%

Northern

64.64%

32.10%

South Eastern

Gozo

42.77%

35.36%

Northern Harbour

Price increase

67.90%

40.41%

24.82%

75.18%

Northern Harbour

24.52%

75.48%

South Eastern

59.59%

37.09%

62.91%

Southern Harbour

Western

37.77%

62.23%

Western

20%

40%

60%

80%

100%

41.74%

Northern

Southern Harbour

58.26%

31.77%

68.23%

25.51%

74.49%

27.85%

20%

Price decrease

72.15%

40%

60%

80%

100%

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

Localities with largest average price increases and decreases Kappara Marsalforn Qala Xewkija Għarb

MONEY · 43

A N A LY S I S

Property listings by property type 2020 Q3 property listings count (total of 45,174)

Safi Senglea Valletta Cospicua Madliena

Apartment

no change in price. Out of the 12% of listed properties that changed price, 63% decreased their asking price while 37% increased it. The average decrease in those with a reduction in price was -7.4%. Localities with the largest average decrease (considering only those properties with a reduction in price) were Burmarrad: - 10.5%; Cospicua: -10.4%; Safi: -9.5%; Mellieha: -9.5%; Ta' Xbiex: -9.1%. What is on the horizon remains unclear. Rental prices have seen large reductions in recent months, with many short-let holiday market property owners listing their properties for long-lets at attractive rates to generate some income while the tourism market recovers. While these decreases have not resulted in a similar reduction in sale prices, the question many buyers and sellers are thinking about is whether this is just a matter of time? Three drivers are likely to influence pricing in the near term:

Penthouse

Maisonette

6,621

5,471

Townhouse

Terraced House

Duplex

939

615

1,798 House of Character

27,052

−

1,609

The continued availability of the wage subsidy scheme to keep people in work and avoid mass unemployment. The timing of the recovery in the shortlets market. Policies relating to mortgage holidays and foreclosures.

− −

Villa

Farmhouse

470

371

The need for real-time, data-informed decision making in the property market has never been more pronounced. While nobody can predict the future, the property market stakeholders who use data to their advantage may be the ones to keep ahead of the curve. 18K

Number of property listings by region 2017 Q1 — 2020 Q3

17K

16K

10K

2020 Q2

2020 Q3

15K Northern Harbour

Northern

South Eastern

Southern Harbour

Western

Gozo

14K

11K 10K

10K

10K 8K

8K 6K

10K

7K 6K

3K 3K

4K 4K 3K 4K

2017 Q4

2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2017 Q1

2017 Q2

2017 Q3

3K 3K

2019 Q2

2019 Q3

2019 Q4

2020 Q1

44 · MONEY

BOOKS

ISSUE 61

FEARLESS Malta: 6 October 2017—a leading Maltese journalist is killed in a car bomb. MONEY delves into press freedom and how one can communicate its importance to children in a simple manner. One attempt is a picture story book by Gattaldo celebrating Daphne’s life, to be launched soon here and in the UK…

M It is vital to teach children on the importance of Press Freedom and bring about awareness that journalists are out there to give us an accurate picture on the goings-on, including scrutinising the work of the Government and Opposition. But do you feel that young children will get the gist in the end? G Think of the numerous times in history that disclosures by journalists helped to change things for the better, to impeach corrupt political leaders or to bring about change through elections and yet, for some reason, polls indicate that journalists are very unpopular now. In this era of challenge to professional journalism, its contribution deserves highlighting. I believe that a big part of the reason for the public’s mistrust of journalists is borne of the public’s inability to distinguish between true and fake news, information and propaganda. Social media has put a spotlight on our lack of media literacy. How do we make sure our children are more prepared? It’s best here to specify the age range (6–11) that my book is targeted at. It’s an essential time of a child’s development when they are spending more time away from their parents and interacting with media more independently, therefore suddenly encountering a lot more unsupervised information. They also start to develop an understanding of abstract concepts like poverty, unfairness, and emotions. Don’t underestimate children. They don’t need anyone telling them what to think. I believe children need guidance but above all what they need is a safe space for discussion. “Fearless, The Story of Daphne Caruana Galizia” tells the life story of a journalist with whom we are all familiar. The book aims to encourage children to be independent thinkers, to inform their opinions and to persevere in fighting for what they believe in. The book provides context and perspective, and that is what children need to make sense of what journalism brings

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

to society. From experience, I warn parents that this book will whip up plenty of questions from their children—the learning certainly doesn’t end with the book. M The murder of Daphne shocked the whole nation. What were your first thoughts on hearing what had happened? Such murders are not synonymous with Malta. Did you ever imagine something of this sort would happen on our tiny island? G I was confused and couldn’t think straight. My first thoughts were those of someone who’s just lost a dear friend. It was the pain of personal loss. I don’t recall thinking much

BOOKS

could get away with it and never make a link between tax and the provision of services. A significant number feel no empathy for anyone who they consider different to them. I know this sounds harsh, but we’ve brought this upon ourselves, and there is no other way about it. We have become complacent about corruption because we believe we might lose our privileges. M The murder exposed Malta’s dark side. In your storybook, what do you try to bring out for children to connect to the story? Is your aim to have the late journalist emerge as a storybook hero although this happened for real?

In terms of the archipelago, I can’t help but feel that the rot had been a long time coming. To the Maltese, the word ‘morality’ has always been limited to sexual virtue. I’ve found Malta can sometimes be indifferent to ethical principles. I believe that a country gets what its people sow, so the pickle the archipelago finds itself in, and the vacuum in political representation is only a reflection of its culture. Let me give you some examples of the crisis in values, and I apologise beforehand if they seem like sweeping generalisations. Most people locally look at the European Union as a cash cow rather than as a tool for solidarity between a group of countries. Most would gladly avoid paying VAT or tax if they

Representing the evils which Daphne stood up to with her writing presented a challenge. How do you explain corrupt power, for example? In one spread, that power is depicted as an all-male Hydra monster in suit trousers. I also wanted this to represent the strong element of misogyny in those critical of Daphne. She’s always been characterised by her detractors as a witch (is-saħħara tal-Bidnija), that centuries-old stereotype of misogyny. M Do you feel this book will spark more enthusiasm among children to pursue journalism as a career—something that isn’t pushed much here in Malta in schools—or will it instil fear among them? G I had many a discussion as to whether I should include the assassination in the story. I concluded that the book aimed to celebrate her life and journalism not focus on her demise. What I hope is for the book to spark a conversation between children and their parents, which leads to an appreciation of the value of journalism to a progressive democracy. Who knows if it touches something more profound and, because of it, end up with more investigative journalists with a desire to change the world for the better? Personally, I’d be happy if the book inspires just one child to pursue journalism or even hold it in high regard.

What I hope is for the book to spark a conversation between children and their parents, which leads to an appreciation of the value of journalism to a progressive democracy about the circumstances at the time. The shock was the one that you experience when tragedy hits you personally. We go about life thinking bad things happen to other people. When the loss is close, it’s a rude awakening. To make things worse, I’d had a rough year during which my mum died, and a close friend had committed suicide.

MONEY · 45

M Tell us more about your informative website which tallies with your storybook on the late journalist? G It’s about a girl, a young woman, a mother who believed her country could do better and did something about it. Like any other human being, she will inevitably have her weaknesses, but that is beside the point. I wanted to celebrate that which Daphne excelled in. Yes, the book does portray her as a heroine as much as she stood firm even when it seemed she was on her own in sticking her neck out. It takes great courage in not giving up when you could have an easier and more comfortable life by acquiescing. This is how great people change things, not by going with the flow. The story starts with her childhood and those events which formed her character. This is important in getting young readers to connect.

The website fearlessdaphne.com started as an online presence for the book, but the more I worked on the book, the more I felt the need for a website that had a broader purpose. Two years ago, a report by a UK all-party group found that 60.9% of teachers in primary and secondary schools believe that children’s wellbeing is impacted heavily by fake news. It also found that only 2% of children have the critical literacy they need to tell if a news story is real or fake. This is where the problem lies, or rather, where the solution lies. If children are given the tools to interpret information, the problem would no longer exist. Fearless Daphne is an attempt at a journey of discovery in journalism, and it is one I hope children, parents and educators will join me in.

46 · MONEY

ISSUE 61

C R E AT I V I T Y

Ed tells stories for a living, running a bustling brand and digital agency called Switch. When he’s not there, he engages in a host of activities that don’t involve actual physical activity—mainly related to food, film, travel, and photography.

DESIGNING FOR UNCERTAINTY It is in times of uncertainty that we need to rise to change and to design a better future. Ed Muscat Azzopardi explains. After the second world war, there was hope and loss and a community that was closer than it had ever been, united by a feeling that collective will could help lift the planet out of its misery. All the technology that had served the war effort was being repurposed— faster airlines so we could travel the world economically, more efficient and affordable cars, and we even had the promise of a man on the moon. Imagine that.

stories that competed for the attention of a public that was willing to pay to watch a story that reinforced their position.

But that feeling of unity took just a decade to dissipate once the Cold War gripped the world and imbued it with fear. Product and technology design was on an accelerating spiral of innovation, driven by one of two broad sentiments that pervaded the developed world—the optimism of the space race and the fear of the bomb.

We start by looking at our audience. Who are we speaking to? What’s on their mind right now? What’s the collective sentiment?

Design and creative were broadly split into two, echoing the main sentiments of this polarised zeitgeist. One did not replace the other. They coexisted and spoke to the audiences that identified with each side. The pessimistic mostly engaged with design and story based on fear while the optimistic gobbled up the tales of a space-faring species. You couldn’t buy a toaster that didn’t look like it belonged on the highly stylised illustrations of what man’s first base on the moon would look like. From Dr Strangelove to The Sound of Music, movie posters told the tale of two

How do we tell the story of our brand or product during a time of collective concern? Which side would we like to take? What matters is that we pick a direction and create remarkable, functional creative. This is not a time to be silent.

And what version of reality is most likely to resonate? During the best of times, there is no single sentiment that is likely to echo with everyone. But during the worst of times, it is easier to have a finger on an almost ubiquitous pulse. Uncertainty is the one certainty. It is on the minds of many, and it is an unnatural state for the human condition—we like to know where we are and where we’re going, at least most of the time. Economic hardship is also a widespread state or cause for concern, a state that’s compounded by general uncertainty. If I’m in a financial pickle now and can’t see when this will end, the concern is even more acute. Where does design fit in? Well, good design always fits in. Every epoch left its mark by producing work that was right for its time, and that survived to tell the tale. The excesses of the Art Nouveau movement during the glittering 20s quickly gave way to the more restrained Art Deco style that was considered more appropriate to the Great Depression. The 1950s, a decade that we keep drawing design inspiration from to this day, was a period of great optimism sandwiched between the crippling effects of WWII and the grip of fear of the Cold War. It gave us bold colour, optimistic product design, an unusually rich spread of typography, and the

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C R E AT I V I T Y

feeling that all will be forever good with the world.

manic in human history. Depending on what your area of specialisation maybe, this might be the time to push for that project that expected a little more of your audience but would ultimately deliver more reward.

And good design that is entirely in tune with the times can leave effects that linger decades after the original work was produced. Consider the incredible canon of Dieter Rams’ work for Braun. It has been cited as the significant influence for the design of an incredible spread of products, including overt tributes by the likes of Jony Ive when presenting the iPod—arguably the big bang for everything Apple that succeeded it. Le Corbusier’s beautiful functionality and unashamed portrayal of structures endure— can we look at a building like Renzo Piano’s parliament in Valletta without seeing what Le Corbusier pioneered in the 20s? In a reality where our homes have suddenly become the majority of our surroundings, how do we react to the sweeping tide of minimalism that has been rearing its head for a long time now, aided and abetted by the likes of Marie Kondo? Now that we are captives in our own home, design has the opportunity to focus far less on pure utilitarianism and must bring joy and comfort into our lives. Empathy is at the core of designing for uncertainty, so our design must show plenty of empathy and have the ability to do the elusive and manage to ‘warm the heart’. There are broad thematic principles to consider during uncertain times. These could include the notion of solidarity in design that shows a clear sense of camaraderie, the kind of work that reassures us that ‘we’re all in this together’. Then there’s distraction. There’s no harm in taking our minds off things for a while. We will look back at this time as one where our thumbs took the shape of whatever device we use to control Netflix and consume social feeds. A third approach to design could be described as understated aspiration. Of course, we don’t want to see too much work that places beauty out of our reach, but we do want something to look forward to when times are less uncertain. This might be the toughest to approach with sensitivity, but it has the potential to be a rugged route, showing our

MONE Y · 47

In general, this is a time to design for good— we ought to design with the future in mind, and we need to design with good intent. But we also need to design what’s relevant, timely, and useful. Design that serves an immediate purpose and that will vanish ones the times have changed is useful, but we can’t expect it to last. Beautiful face masks are a delightful way to distract us from the minor annoyance of wearing a mask, but we look forward to a time when we don’t have to think about them anymore. audiences that if we hang in there, a reward will be forthcoming. There is always the get-out-of-jail-free card that’s designing for instant gratification. This is a bit of a cheat-card, but it can tide us over while we plan design that’s more forwardlooking and empathetic. After all, little bumps of gratification during our day can help stave off the anxiety and the uncertainty. This is design for concise time preference—it addresses the bit of our monkey brain that would like something to make us happy right now, even if we know it won’t last. Then there’s design for longer time preference, the work that we produce with the intent of a longer consumption moment and a more prolonged sense of satisfaction with the consumer of our design. In effect, the world has slowed down; it has time to breathe. We are taking a break from a society that had reached a fever-pitch. That was rushing along at a pace that was the most

During the best of times, there is no single sentiment that is likely to echo with everyone. But during the worst of times, it is easier to have a finger on an almost ubiquitous pulse

However, those designing a better way to combine our living space with a functional working area will likely be remembered for a long time. Some shifts in the way we work. In the manner in which we interact, and in the way we regard the functional spaces we inhabit (home/office/retail/etc.) will last longer and, hopefully, form part of the fabric of the society we will come to regard as usual. Let’s learn lessons from the past as we design a better future. I’m pretty sure that during WWII, there were plenty who wished the world would go back to what it was before the war. Looking back, it is pretty evident that the world could not and would not simply revert to a previous state. Retail environments have changed and will continue to do so, the way we interact indoors and shift to the outdoors will remain. We’re crafting new ways to be connected. We are revisiting education, workplaces, and commutes around this, and this is just a handful of examples of contextdriven design that’s being demanded on all fronts. Let’s put design to good use. Whether the world acknowledges it or not, design has pulled us out of the toughest of times and has left beauty and functionality in its wake, creating movements that have defined the visual landscape of the times. This time around, the world is once again asking for certainty, functionality, and relevance. And once again, it is time for designers to step in and, in a distributed and cumulative way, save the planet.

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L AST WORD

The Bluesman is a Maltese sound engineer working in New York.

PESTILENCE The Bluesman analyses COVID pandemic measures undertaken in the hope that eventually the pandemic, like previous ones, will be a thing of the past in no time.

There was a pestilence in the air, yet some saw it not. There was a pestilence in the air, yet some chose to flirt with it. There was a pestilence in the air, and many died. It crept upon us as far as public awareness or notification was concerned much like the sickening miasma that was thought to arise from the swamps in Louisiana at night. In truth, the theory had come into being far away from any Louisiana swamp although it did have a firm grip on folklore and Louisiana.

Before the understanding of the spread of disease was spawned and grew in acceptance, your average man in the street, field, and palace was baffled by sickness. The devil and witches were one thing, everybody was happy to have a scapegoat, and the lonely crones and their demon familiars were easy targets. But by the early 1700s, the enthusiasm for witch trials was dying. Probably because burning these poor women wasn’t having the desired effect and cures weren’t forthcoming. One woman was pardoned after conviction and set free in England, highlighting this loss of appetite for burnings. A couple of years later in Scotland, Kate Nevin after being hunted for three weeks was put to death

by Faggot and Fire [not what you think] in Perthshire. It took another 70 years before Europe put a halt to these horrendous proceedings, Switzerland being the last country to do so. Now folk needed to understand where cholera, chlamydia the Black Death and other fine ravagers of humankind were coming from. In their minds, the idea took hold that it was a miasma [from the Greek for pollution], a form of bad air. Florence Nightingale, the Lady with the Lamp, the nurse who came to prominence during the Crimean War where she was a managing nurse. She used to walk through the wards at night carrying a lamp,

to check up on patients, hence the name she was known by, and she was a firm believer in this theory. Her work making sure that hospitals were fresh and airy to combat this ‘bad air’ causing ‘miasma’ helped pave the way to the spotlight being turned on ‘microbes’ as being the cause of this decaying matter fouling the air and eventually being identified as the cause of infection. A sceptic of this Miasma Theory, however, was a fellow named John Snow. He espoused the idea that it was contaminated water, not air that spread disease and his attention was drawn to the fact that amid the 1854 cholera pandemic he observed a high mortality rate

T H E R E A L E S TAT E A N D D E S I G N E D I T I O N

among the residents in the proximity of a pump in Broad St, Soho. He published his findings and even persuaded the Parish [the Beadle, one supposes] to remove the handle and pump fresh water from a different source rather than the current source close to and possibly mingled with effluvium from those new-fangled water closets. Snow didn’t quite understand how it happened, but he did feel that sewage dumped in the rivers [there were and still are many undergrounds, in London] or close to wells serving the towns, contaminated the water supply and spread the contagion. He lived close to Soho, which I’m sure spurred his efforts to prove it. This during the worldwide cholera outbreak that lasted from 1846 to 1860. I’m sure there were those claiming it was their right to, dammit, drink sewage if they wanted to. One might argue that the City of Westminster is still foul with contagion, but that’s an argument for another time. Snow was eventually vindicated, albeit after his death when the run of discussion on the subject beginning way back with Hippocrates [of the Oath] petered out by the middle of the 19th century and hammered home by the work of Louis Pasteur and his views pointing to germs and microbes. The unseen enemy. One can hear the exchange from the Charge of the Light Brigade movie between Harry Andrews and David Hemmings: “Attack what, attack where?” “Germs, Mr Nolan!” An apt reference I think, as the Battle of Balaclava took place in 1854. So, over the centuries, the difficulty people have with understanding this invisible enemy out to destroy us waxes and wanes. Now evidence in this latest blight upon us is being poohed. Despite the big one just over a century ago, with at least two junior ‘almosts’ in the not too distant past, the face of death tolls all over the world. There is folk proclaiming that it is all a plot to keep us subjugated or the effects of 5G phone transmissions as manifested by contrails. What has humanity garnered in scientific knowledge over the millennia and to what end if we are so ready to crawl back into the womb cover our ears and hum denial? Happily

L AST WORD

go from Moonwalkers back to Arthur C Clarke’s Moonwatcher—the hominid who sat before the Monolith in 2001, A Space Odyssey, and understood the message of progress and the beginning of thought leading to his clan’s gradual success against their competitors. Here we are facing what could quickly have become our road to extinction had scientists not issued warnings and precautions we need to take to limit the damage until weapons could be developed in defence. It’s a long road, and for large numbers of us, it’s too long. They are not that inclined to wait, preferring to lull themselves into thinking it’s not as dire. No miasma to smell must be safe. This is not new. During the 1918 pandemic, there were sceptics too. Granted that crowded troop carriers, as soldiers were returned home after the Great War significantly contributed to the spread of the disease. Still, the parades celebrating the end of hostilities was an option that should have been avoided. A lot of people thought masks were an imposition and preferred inhaling friends’ and strangers’ virus-laden sputum. Possibly if people sneezed out a reddish or yellow cloud, everybody within range would be more than happy to hold a cloth to their faces. And so history seems to be repeating itself in our current viral fight, and with most activities at a standstill or virtual standstill, we are left to wonder how long this episode will last. Even with government aid, a lot of needs are not being met and are being put on hold. In the US, the Administration has been remarkable tight-fisted with any assistance

A lot of people thought masks were an imposition and preferred inhaling friends’ and strangers’ virusladen sputum

MONEY · 49

and stopped all extra Federal money going to those who need it most. Multi-billiondollar corporations, on the other hand, were recipients of much largesse in the form of taxpayer money. The Republican-controlled Senate has now returned from their summer recess [they work so hard poor dears] and found it within themselves to squeeze out a few more drops of lucre. Mustn’t let the hoi polloi think they can relax. Meanwhile, the pestilence rages on with no effort made by the powers-that-won’t to issue standardised guidance and recommendations and the plague carts roll on. New work practices get established because other than those who can pick up and work remotely there are those, like in my industry, who are more hands-on, but stagehands in theatre and film have no sets to build if there are no productions. Broadway is shuttered until possibly March of 2021 but not if COVID is still being spread. In my field, workarounds are being planned, mainly with hybrid live presence and video events. Other than live bodies which can be arranged to be the required distance apart and food which can be safely served, protocols need to be in place regarding masks, and the handling of microphones and their sanitisation after every use. There are shrouds available [I had even used a condom in rainy weather some years ago] and lamps to beam UVC light over the equipment. It will be a slow start, but that would be the only way to start the rebuilding of the industry safely. At some point, a vaccine will be proven effective and safe [I’d prefer a cure while we wait] and enough made for distribution. Then humanity will shrug it off and move forward until the next one unless the melting ice caps drown us first.

PHOTOGRAPHER Marvin Grech

STYLIST Peter Carbonaro

DREAMING in COLOUR MODEL Luigi @ Models M

Shot on location at HOLM Boutique & Spa

Sweater, jeans by Charles & Ron, The Point, Sliema

Beanie by Benetton; jeans by Charles & Ron, The Point, Sliema

Sweater, polo shirt by Benetton; bag by Charles & Ron, The Point, Sliema

Suit, shirt by Ted Baker, The Point, Sliema / Sunglasses: stylist's own

All items by Charles & Ron, The Point, Sliema

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FA S H I O N

Brunello Cucinelli Suede-trimmed burnished full-grain leather backpack €2,300

Saint Laurent Wyatt suede Chelsea boots €695 Cutler and Gross Square-frame acetate sunglasses €320

AUTUMN APPAREL Autumn doesn’t need to be a browner shade of brown. MONEY welcomes the new season with a show of delectable fashion pieces. All items available from mrporter.com

Givenchy Logo-print loopback cotton-jersey hoodie €690

Tom Ford Denim jacket €920

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FA S H I O N

Saint Laurent Textured-wool sweater €650

Alexander McQueen Slim-fit wooljacquard suit jacket €1,690

Prada Logo-detailed cotton-poplin shirt €470

Tom Ford 4cm Black and Dark Brown Reversible FullGrain Leather Belt €550

Alexander McQueen Exaggerated-sole croc effecttrimmed leather sneakers €420

Etro Tapered wool trousers €365

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PROMO

You see a battery; I see an opportunity MONEY interviews Thomas Kraemer, CEO at E-Stream Energy and Timberland Finance, on a newly-developed battery packaging system that stores electrical energy in a cost-effective and ingenious way. M E-Stream Energy. Tell us more about its origins, and what is its mission? T E-Stream Energy GmbH & Co KG (‘the Company’) was founded in 2004 as an IT service provider focusing on the purchase and the provision of hardware and software for the commercial sector. Since 2016, it has repositioned itself, focusing on renewable energy. It is now a pioneer in the development of versatile, high-performance mobile and long-term stable, stationary as well as portable and transportable applications. The newly developed battery packaging system is its crucial technology based on the classic cylindrical cell. This technology represents an ingenious and costeffective way to store electrical energy. M Can you take us through the processes in the development of these storage systems? T From its location in Monchengladbach, Germany, the company manages the whole process of development of its products, from research and development to manufacturing. Subsequently, prototypes are tested for conformity and practicability, aiming for mass production. M What are the main attributes of lithium batteries? T Lithium batteries provide massive energy storage with a longer lifespan and can be applied in different electronic devices, including electric cars. The auto industry is looking for alternatives to the internal

Lithium batteries provide massive energy storage with a longer lifespan and can be applied in different electronic devices, including electric cars combustion engine, and E-Stream has embarked on this opportunity by developing a lithium battery with German technology directly onto an electric car. This is being done through E-Stream Energy’s dedicated team, focusing on research, development, production and distribution of battery cells, battery energy storages and applications. The car is currently in development and is awaiting homologation for the European launch, expected in 2021. M What is the end of life cell of the automotive packs? T When the end of the cell lifetime is reached, the E Stream Energy battery can be

restored by switching out cells rather than the entire modules. Hence the end of life cells can be easily dismounted and used in energy storage applications to expand their lifetime. M Where do you see the future? T A new phenomenon is affecting the way companies do business. The public is demanding that businesses follow the Environment, Social and Governance (ESG) principles. E-Stream Energy sees this public demand as an ever-expanding opportunity to become the ESG partner of small and large businesses on an international scale. M How can individuals benefit from the opportunities of this technology? T One can benefit from this initiative by contacting Timberland Invest Ltd, a regulated entity authorised by the MFSA under the Investments Services Act of 1994, distributing bonds issued by-E-Stream Energy GmbH &Co KG. Timberland Invest Ltd. can be reached by phone on 20908100 or by visiting its offices at Aragon House Business Centre, Dragonara Road, St Julian’s STJ 3140.

CHRONOMAT