In 2012, the Farsons Group completed the development of a modern and technologically up-to-date brewhouse at their industrial estate in the heart of Malta. This released the original brewhouse and stores – a stunning complex of 1950s art deco buildings – for redevelopment.
Informed by the experience of destinations like Guinness Storehouse, the Heineken Experience, Carlsberg Brewhouse and the Old Truman Brewery, Farsons lighted on the concept of a visitor experience and brand showcase. Fourth Street were instructed to assess the market and produce a comprehensive business plan for the visitor centre, as well as a broader development appraisal for the rest of the estate that would underpin a future financing strategy.
The market assessment immediately pointed to a series of critical issues related to particular factors like a very small resident market, extraordinary local affection to the company and its brands, a surge of tourist visits in the summer and a rich competitive environment especially for history and heritage. Through various iterations of the business plan, a strategy was developed to make the product versatile and adaptable in operation. Different components were re-scaled and the product mix changed to better suit the local market.
In parallel, Fourth Street produced a detailed Discounted Cashflow model for the whole of the development, including the visitor centre, as well as a proposed office complex with ancillary retail and catering. As Farsons is a highly respected ‘blue chip’ stock on the Malta Stock Exchange, it was especially important to the client that this appraisal was rigorous and robust and would withstand the detailed scrutiny of third party analysts. Accordingly, we worked closely with the client’s auditors to stress test model and challenge all of its key assumptions – a process that led, in a fruitful and collaborative way, to further improvements to the strategy, including a revised approach to quantum, mix, and phasing.
Fourth Street is continuing to support Farsons in assessing and refining the development options.