Capital Gardens Project raises TMGs target price 50%: CI Capital

ArabFinance: Talaat Moustafa Groups (TMG) (TMGH) Capital Gardens project in east Cairo raises the target price (TP) of the companys share by 50% to EGP 7.50 per share, according to recent estimates by the research unit of the Investment Bank CI Capital.

CI Capital expected that the sales of residential units in the project, about 88% of the land balance, would record about EGP 787 billion, which could add about 3.65 pounds per share to assess the TP.

Around 8% of the project has been allocated to sales and leasing of non-residential units, worth about EGP 110 billion, which adds EGP 3.85 per share to assess the TP. Meanwhile, the remaining 4% was allocated to services.

The project is expected to achieve negative operating cash flows during the first six years from its launch, mainly due to the payment of the land value of EGP 4 billion pounds in cash.

The research unit expects the potential return to increase by more than 100% compared to the current market price.

In January, TMGs subsidiary, the Arab Company for Projects and Urban Development, purchased 5,000 feddans in Capital Gardens.

The EGP 500 billion project is expected to comprise over 140,000 residential units, in addition to commercial, administrative, medical, and educational facilities.

The listed developer reported a net profit of EGP 1.569 billion during the first nine months of 2020, compared to EGP 1.312 billion in the same period a year ago.

TMG is an Egypt-based company engaged in real estate investment activities. The company establishes and develops hotels and touristic and residential projects in Egypt.