Palm Hills buys $267mln worth stake in its education subsidiary from Mansour-Maghraby

Palm Hills is in the final stages to potentially add 82,000 sqm to its Palm Hills Sokhna plot

  
A trader works at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015.

A trader works at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015.

REUTERS/Mohamed Abd El Ghany

Palm Hills Development’s Board of Directors has approved the purchase of a 28.16% stake in its education subsidiary, Palm Hills Education, from Mansour-Maghraby Investment and Development Company (MMID) for EGP 4.195bn.

The Board also approved the purchase of MMID’s 11% stake in East New Cairo for Real Estate Development, estimated at EGP 11m.

Meanwhile, a source told Daily News Egypt that positive accumulated cash-flow after the payment of debt, taxes, and investments over the next 10 years is expected to reach a preliminary initial projected amount, in Egyptian pounds, running into roughly the double digit billions. This is subject to change upward or downward according to board approval. 

This preliminary div does not include the monetisation of Botanica or the commercial areas in Palm Hills New Cairo, Palm Hills Alexandria, The Crown, and Golf Views, nor residual land plots such as that in Sahl Hasheesh. 

A portion of the amount is earmarked for allocation to Badya, and the bulk is earmarked for potential dividends, share buybacks, and/or land acquisition only in cases where there is a shortage in the market.

Palm Hills is in the final stages to potentially add 82,000 sqm to its Palm Hills Sokhna plot.

The company received the licence for the back area to its Hacienda White plot and is looking at a land plot adjacent to Hacienda White. It expects to take on debt in Badya and Palm Hills New Cairo.

© 2021 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

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