One of Egypt’s largest real estate groups, Palm Hills Development, has unveiled plans to invest EGP3.8 billion ($242 million) in 2022 to cement its position in the real estate industry and unlock its value as a going concern.
The projected investment for the coming financial year represents an increase of 52 percent, or EGP1.3 billion ($82.7 million), compared to the EGP2.5 billion ($159 million) that it projected for the current financial year.
Egyptian billionaire Yasseen Mansour, the chairman of the property developer, said in an interview that the decision to invest EGP3.8 billion ($242 million) in 2022 places Palm Hills in a favorable position to tap into gains in the real estate industry following the COVID-19 pandemic.
He added that real estate prices in Egypt are expected to rise by between 10 and 12 percent in 2022.
On the backdrop of the double-digit surge in real estate prices, it expects sales of about EGP170 billion ($10.81 billion) from the Badya project.
Badya is an integrated urban project in the west of Cairo, Egypt. It is projected to be completed within 14 years.
Since the start of the year, Palm Hills has seen an impressive growth in earnings due to increased sales of primary and secondary homes and commercial units.
In the first nine months of its current financial year, the Egyptian real estate company reported a 66-percent growth from EGP3.55 billion ($225.8 million) in 2020 to EGP5.89 billion ($374.63 million) this year, while net profit after tax increased by 24 percent from EGP515 million ($32.76 million) to EGP635 million ($40.4 million).
In his comment on Palm Hills’ nine-month financial performance, Mansour revealed that the management is confident about the company’s sales capabilities and expects to surpass the previously announced sales target of EGP15 billion ($954.2 million) for this financial year.
As of press time, Nov. 22, shares in the leading real estate company were worth EGP1.69. At this price, its market capitalization is estimated at EGP5.14 billion ($327 million), making it one of the most capitalized real estate companies on the Egyptian Stock Exchange.