Palm Hills Developments, a Cairo-based real estate development firm led by Egyptian billionaire Yasseen Mansour, reported a 38-percent increase in new sales in the first half of 2022 owing to strong demand for its recently launched commercial offerings in Egypt’s capital city, Cairo.
Palm Hills disclosed in its recently published financial results for the first half of 2022 that its sales increased by 38 percent to EGP10.7 billion ($558.5 million) during the period under review, up from EGP7.76 billion ($405.1 million) in the same period in 2021.
The group’s residential and commercial property sales rose by double digits in the first six months of 2022, owing to robust demand for Palm Hills New Cairo’s newly launched commercial offerings and Village Gate Mall in East Cairo, as well as healthy momentum at Crown Central Mall in West Cairo.
This strong growth in new sales helped the group’s revenue increase by 73 percent, from EGP4 billion ($208.9 million) to EGP6.9 billion ($360.3 million). This increased profit after tax by 21 percent, from EGP461.1 million ($24.07 million) to EGP558 million ($29.13 million).
Mansour, executive chairman of Palm Hills, commented on the group’s performance and the number of properties delivered in the first six months of the year, stating that the real estate company delivered 643 units — a 24-percent year-on-year increase in handovers — and completed more than 600 units that are ready for delivery across various projects.
He added that the group spent EGP1.7 billion ($88.7 million) on construction activities to maintain its consistent focus on increasing construction spending to hedge against cost inflation in the coming quarters and increase the balance of its ready-to-move inventory, which recorded EGP4.4 billion ($229.7 million) during the period under review.
Palm Hills Development, a subsidiary of Egypt’s largest conglomerate Mansour Group, is a well-known Egyptian real estate developer with active investments in Egypt. The company develops integrated residential, commercial, and resort communities.
Mansour, who leads the Egyptian real estate developer, owns a sizable 5.22-percent stake in the real estate firm.
Palm Hills shares on the Egyptian Stock Exchange rose sharply by 61 basis points to EGP1.31 ($0.0684) per share in response to the financial results, bringing the firm’s market capitalization to EGP3.99 billion ($208.35 million), while Mansour’s 5.6-percent stake is valued at EGP223.4 million ($11.66 million).
