EGYPT – Palm Hills Developments, a leading real estate company in the Egyptian market, through its Board of Directors, has approved the purchase of a 28.16% stake in its education subsidiary, Palm Hills Education, from Mansour-Maghraby Investment and Development Company (MMID) for EGP 4.195 bilion (US$267m).
The Board also approved the purchase of MMID’s 11% stake in East New Cairo for Real Estate Development, estimated at EGP 11 million (US$0.7m).
This preliminary figure does not include the monetisation of Botanica or the commercial areas in Palm Hills New Cairo, Palm Hills Alexandria, The Crown, and Golf Views, nor residual land plots such as that in Sahl Hasheesh.
A portion of the amount is earmarked for allocation to Badya, and the bulk is earmarked for potential dividends, share buybacks, and/or land acquisition only in cases where there is a shortage in the market.
Palm Hills is in the final stages to potentially add 82,000 sqm to its Palm Hills Sokhna plot.
The company received the licence for the back area to its Hacienda White plot and is looking at a land plot adjacent to Hacienda White. It expects to take on debt in Badya and Palm Hills New Cairo.
According to Daily News Egypt, positive accumulated cash-flow after the payment of debt, taxes, and investments over the next 10 years is expected to reach a preliminary initial projected amount, in Egyptian pounds, running into roughly the double-digit billions. This is subject to change upward or downward according to board approval.
In September 2020, Palm Hills Development has inked a co-development and revenue sharing agreement with Al Shorouk for Touristic Developments.
The deal was to see a new U$215 million mixed-use community take shape in the Ain Sokhna region of Egypt.
As per the deal, Palm Hills will be responsible for all work related to construction, development, infrastructure, marketing and sales activities.
The two companies are said to have finalised the masterplan, which will offer standalone units, town houses, senior and junior chalets, as well as serviced apartments, in addition to hospitality and recreational components plus commercial facilities.
Palm Hills chairman and group CEO Yasseen Mansour said the company is expecting to generate residential sales of US$314 million from the project. The first units are being planned for handover within three years from the project’s launch, he stated.
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