TMG pays $3bln for Capital Gardens City’s land value in 2021: CI Capital

The project will be launched in the second half of 2021

  
Image used for illustrative purpose. An aerial view of new housing complexes in a suburb of Cairo is pictured through the window of a plane, Egypt December 16, 2017.

Image used for illustrative purpose. An aerial view of new housing complexes in a suburb of Cairo is pictured through the window of a plane, Egypt December 16, 2017.

REUTERS/Amr Abdallah Dalsh - RC1169D2CE00

Egypt - CI Capital has revealed that Talaat Moustafa Group Holding (TMG) will pay a total of about EGP 44bn for the land value of Capital Gardens City over 2021.

This will be divided in two tranches, with about EGP 40bn representing an in-kind payment for 21m sqm plot of land that the company bought from the New Urban Communities Authority (NUCA). This land plot is located in Capital Gardens City, close to the New Administrative Capital (NAC) in east Cairo.

The payment comes in addition to a cash payment of approximately EGP 4bn, which will be in the form of four equal annual instalments starting from 2021.

A report by CI Capital highlighted that TMG shares on the Egyptian Exchange (EGX) rose by about 50% as a result of the new project, which could add about EGP 7.50 per share. This is based on the standard activity of TMG’s performance in the market, and after winning its mega project in the Capital Gardens City.

The report projects that the sales value of housing units at the project would reach approximately EGP 826bn, whilst non-residential sales would reach nearby EGP 58bn.

The investments pumped into the project are estimated at EGP 500bn, especially since it was decided that the project would include 140,000 housing units. This is in addition to commercial and other spaces for retail, medical and educational projects, alongside a sports club and a 5-star hotel.

TMG’s project at Capital Gardens City, which will be launched in the second half (H2) of 2021, is being designed by the three largest US planning offices, with the latest technology to be applied in the project. The company is looking to create a smart urban community in line with modern visions in building smart communities.

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