Key Points:
- TMG Holding launches SouthMed, a $21-billion project on Egypt’s North Coast, expected to create 1.6 million jobs and generate $5.9 billion in tax revenues.
- SouthMed features an eight-kilometer shoreline, 60,000 residential units, luxury hotels, a marina, golf course, and entertainment centers.
- TMG Holding’s market cap surpasses $2.5 billion, with shares returning 58.87% gains to investors since the start of the year.
TMG Holding, the Cairo-based real estate giant led by Egyptian billionaire Hisham Talaat Moustafa, has announced the launch of its first project on Egypt’s North Coast, with total investments of EGP1 trillion ($21 billion).
The project, named SouthMed, spans 23 million square kilometers and is expected to create 1.60 million jobs and generate EGP283 billion ($5.9 billion) in new tax revenues.
The announcement of the landmark project comes as TMG Holding partners with the Arab Organization for Industrialization (AOI) and the global elevator leader Schindler Group to localize the production of elevator components in Egypt.
SouthMed: Egypt’s new gem
SouthMed, located on the Alexandria-Matrouh Road near El-Alamain International Airport, features an eight-kilometer shoreline and is planned as a mixed-use leisure and entertainment destination. It will include more than 60,000 residential units, hotels with around 2,000 luxury rooms, a luxury marina, an 18-hole golf course, malls, restaurants, and entertainment and arts centers.
Within the first 12 hours of its announcement, SouthMed generated more than EGP60 billion ($1.25 billion) in initial reservations. The project is expected to achieve total sales of EGP1.6 trillion ($33.3 million) and contribute EGP2.4 trillion ($49.8 billion) to Egypt’s economy.
TMG’s real estate dominance
Founded in 1974, TMG Holding has cemented its position as a leading force in Egypt’s real estate industry. Under the leadership of Hisham Talaat Moustafa, who holds a 43.16-percent stake in the company, the conglomerate has witnessed exponential growth.
In February 2024, TMG Holding partnered with Abu Dhabi-based investment firm ADQ and Modon Properties to develop the $24-billion Ras El-Hekma project. Additionally, it has commenced the construction of Banan City, a premium mixed-use development in northeast Riyadh, Saudi Arabia, with a total investment of SAR31.4 billion ($8.4 billion).
TMG Holding’s sustained expansion and successful track record in Africa and the Middle East have led to record-breaking sales figures. Property sales surged by 206 percent in the first quarter of 2024, reaching EGP61.8 billion ($1.3 billion).
Market cap surpasses $2.5 billion
TMG Holding’s share price on the Egyptian Exchange (EGX) has increased by 149.3 percent in local currency terms, pushing the group’s market capitalization above $2.5 billion. After accounting for the devaluation of the Egyptian pound, the group’s shares have returned a total of 58.87 percent gain to investors since the start of the year.
Hisham Talaat Moustafa’s stake in the company has increased in market value by EGP31.96 billion ($412.8 million) since the start of the year, rising from EGP21.7 billion ($701.25 million) on Jan. 1 to EGP53.6 billion ($1.11 billion) at the time of drafting this report.
