The group blazed a trail when it opened its first home for the elderly in 1993, at a time when this sector was considered the responsibility of the Church or the State. Now, thanks to a project called HILA, Nazzareno Vassallo intends to achieve yet another very important milestone for a group that has never held back in contributing to the country’s welfare.
The Vassallo Group is celebrating its 70th anniversary. What were the company’s biggest achievements?
Seventy years is a long time. But what I consider one of the first great achievements was the building of the Danish Village Project back in the 1970s. Up to that day, it was the biggest contract ever awarded to a single contractor. It was also the first turnkey project and back then it was a new concept for Malta. Later, we worked on the Airport terminal in the late 80s. That was one of the first consortiums and Vassallo Group was chosen to lead it.
The group also expanded into the hotel industry and important restoration projects. I can recall the restoration of Mosta Dome and the Cathedral in Mdina. We have been trusted with challenging projects, all of them considered as a one in a lifetime experience. The American Embassy and the huts in Salina were all very unique projects. These that I just mentioned are the ones related solely to construction.
One very important milestone for us was when the group became a pioneer in the care for the elderly sector. No one in the private sector ever dreamt of having a role in this sector. Before, care for the elderly was only provided by the Church and the State. But we were the first, back in the early 90s, to set up a home specially designed for the elderly – Casa Arkati in Mosta. This paved the way for nine homes for the elderly which are run by the group and are home to more than 1,500 people.
Vassallo Group kept growing and eventually also entered the IT sector.
Let’s go back to the group’s origins. How was Vassallo Group set up?
The group was set up by my father, right after the World War II in 1946. The country was severely damaged and my father, who was a farmer, happened to be one of the very few who owned a truck. So after the war, the military assigned them to go round and clean up the debris of destroyed structures. That was the moment that our family was introduced to construction. After collecting debris, my father and two of his nephews started to build a number of houses. Eventually they were even building schools. In fact, the polytechnic in Msida was one of their first big projects. It was a partnership between three people and the projects employed more than 150 workers. That same partnership was responsible for the building of City Gate in Valletta in 1963, which was demolished some years ago.
Later, in 1965, my father together with his five sons, decided to end the partnership. The other party formed Gatt Brothers and we formed our very own Vassallo Builders.
For this anniversary, you chose the theme of Tradition, Innovation and Diversity. How important do you think these elements are to the group?
All of them are very important. First of all tradition, because I believe we always build on our history and traditions. The company has 70 years of history during which we have worked on all kinds of projects. From construction to hotels, from catering to homes for the elderly and now even IT and waste management among others. There is no business aspect we have never explored.
We also chose innovation for this year’s theme because the group always had its eyes open on how we can improve our service and to see if we can get involved in new sectors. Even as a group, we had to advance. If you look at the work we used to do before and the way we work now, it is very different. The group was also innovative in being the first to get involved in turnkey projects.
Ultimately, we have been successful because we did not try and copy what other companies were doing. I wanted the group to lead, not follow.
As for diversity, I think we are a very diverse group. We’re into construction, real estate, joinery, hospitality and so on. The group was a pioneer in the care for the elderly and today we are still the leaders in this field. Our group does not depend on one business and this is why we included diversity in this year’s theme.
What do you think will be the challenges for the group in the coming years?
We have quite a list of challenges we have to face in the future, and we look forward to the years to come. As a group, we have approved the strategy for the company for the next five years. Right now, the group is in fact following this strategy, which will take us to 2020. We know there are new businesses segments we need to dwell on and we plan to increase the group’s consolidation to make it even stronger.
Is there any big project in store for this year?
Yes, and I am very much looking forward to what we have in store for this year. As part of our 70th anniversary, I am proud to tell you that the group will, again, be the first in the private sector to set up a respite home for people with disability. And this time, again, Vassallo Group will be a pioneer as the first private entity to invest in this sector.
We hope that the home, Casa Apap Bologna in Mosta will be opened in June. The project will fall under our new concept – HILA. We decided to come up with this name for two reasons. One of them is that in the Maltese language, HILA represents one’s ability and will, but it is also an acronym for Homes to Independence and Limitless Abilities.
This is a project which excites us as a company and me personally. After 25 years working in the care industry, I think that our next step should be to widen our services to those people with disability. The country needs these types of projects and I believe we can contribute a lot.
Vassallo Group has worked on big projects under different administrations. Which were your favourite projects?
For me personally, the Danish Village project will remain one of my favourites. It was challenging, but I was very satisfied with the end result. I think, in fact, it was beyond any other contract issued in the 1970s. The standards were very high and we were probably the first to work with architects from abroad.
The government had given us a 23-month deadline and I was so proud when we managed to finish a month earlier than expected. We literally were able to hand over the keys of the project. The project was complete down to the last little detail. The operators could get in the very next day, and they did.
The Airport project is also on the list of my favourites. Let’s not forget that the tender for this project was open to international companies as well. That is why I decided to contact other local contractors, who were my competitors, to form a consortium. We eventually met up and decided to form Novita, which ended up being a very successful consortium which I led as chairman. All partners did their part and at one point, there were 700 people working on this project.
This ultimately is what gives me the most satisfaction – the creation of jobs. It is true we are profit-driven like any other business, but I take pride seeing the number of employees grow and the number of beds for the elderly increasing. I look forward to offering beds to people with disability in the near future.
As you said, the group has been a pioneer in the social welfare sector. How important is this to you personally and to the group?
If I had to choose only one segment in which we operate that is most close to heart is in fact, the social projects. I have always tried to give my utmost when we set up homes for the elderly, and when possible, I chose to have the group involved in the home’s administration. Although I am not involved in the day-to-day running of these residencies, I always look at how we can make them better, bigger and more modern.
Property will definitely remain one of the most important entities of the group. As a family, we have become synonymous with property and this sector is tied to us intimately. Our roots will always be property and land.
Are you still involved in the day-to-day running of the company?
I am still involved at board level, but the day to day running of projects related to construction is dealt with by my sons. Apart from my five sons, there is an executive team which also has its own responsibilities. We made sure that there are non-family members involved in every level of the company. We are investing in a new generation at every level of the group.
My involvement is related mostly to strategy, property and homes for the elderly.
We know of Nazzareno Vassallo and the brand you created. But are you involved in anything else apart from the group?
My ultimate passion has always been work. That is what I love to do. But in all my life, I have always been involved in anything related to my dear locality, Mosta. I have been involved in whatever happened in Mosta in the last 50 years. Nowadays I hold no official positions in any local organisation. I just help whoever wants to work for the good of Mosta.
Do you plan on retiring anytime soon?
Somewhere, at the back of my mind I do have a retirement plan. But every time I end up delaying it. I believe in continuation and I don’t think that everything in the company revolves around me. This is a team effort. All I did was work on a structure of succession so that if something happens and I cannot lead this company anymore, the group can move on.