Egypt’s Misr Al-Gadida to sign major development deal in June, boosts revenue forecasts

(Updated to include company’s first-quarter results released Sunday)

Egypt’s Misr Al-Gadida for Housing and Development, which is listed on the EGX stock exchange, expects to sign a new agreement this month to develop 491 acres of land, a top official at the company said.

Sameh Al-Sayed, the company’s chief executive, said in an interview with Zawyarabic that the deal is the latest in a series of similar agreements recently signed with Egyptian developers, and the fourth.

“In addition to sales revenue from sales cooperation agreements (with developers), these (four) agreements will generate an average annual revenue of approximately 7.5 billion Egyptian pounds ($159 million) over the next 14 years, which may increase our of total income.

The fourth agreement will be signed with Egypt’s Madinet Masr for Housing and Development, which is also listed on EGX.

Projects for the four transactions are expected to start in the first quarter of 2025, the CEO said.

Misr Al-Gadida has a history of over 118 years and is majority-owned (72.25%) by the Egyptian government through the Construction and Development Holding Company.

profit forecast

Misr Al-Gadida’s financial performance shows a strong upward trend due to land sales and strategic partnerships.

Results released on Sunday showed the company’s net profit rose to 748.5 million pounds ($15.8 million) in the first quarter of 2024, compared with 19.4 million Egyptian pounds in the same period a year earlier.

Al-Sayed told Zawyarabic last week that the company expects net profit to surge more than 30 times in the first quarter of 2024 from the same period last year to about 680 million Egyptian pounds ($14.4 million).

In 2023, the company’s net profit was EGP 7.8 billion, compared with EGP 603 million in 2022.

The new development agreement will leave approximately 700 acres of Misr Al-Gadida’s 5,000-acre land bank.

Looking ahead, the company is selecting a consultant to develop a 26-acre residential project area in New Heliopolis, the city of Misr Al-Gadida that the company manages. business name.

Selection is expected to be completed within a month, paving the way for contractors to bid and investment costs to be determined within three months.

The company also plans infrastructure investments, targeting an estimated EGP 1 billion to be funded through partner revenue streams in 2024 and 2025.

Additionally, Misr Al-Gadida is actively seeking to acquire new land outside Heliopolis, targeting approximately 600 acres from the New Urban Community Authority (NUCA).

The land will be developed independently through partnerships or a combination of the two.

“We are ready to move to new areas and open up new avenues for growth,” Al-Sayed said, citing Sixth of October and Capital Gardens as potential areas for expansion.

(1 USD = 47.17 Egyptian pounds)

(Reporting by Shaimaa Hefzy; Editing by Anoop Menon; Additional editing by Yasmine Saleh)

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