Emirati real estate giant Aldar Properties is interested in co-developing Heliopolis Housing and Development’s (HHD) Heliopark project

Newsletter

04 Apr 2023

Emirati real estate giant Aldar Properties is interested in co-developing Heliopolis Housing and Development’s (HHD) Heliopark project. The company is considering how to finance the Heliopark project and won’t wrap up its studies until after the Eid al-Fitr holiday, adding that attracting USD investment is likely a top priority for HHD. Mountain View had been set to invest some 1.4 billion EGP in exchange for an undisclosed share in the revenues of Heliopark over a 23–25-year period, which Heliopolis Housing at the time estimated could total some 397 billion EGP. (Al Mal)

It is worthy to mention that Aldar is looking at alternatives after a potential acquisition of Orascom for Real Estate (ORE) by its subsidiary SODIC fell through
SODIC, majority owned by Aldar and Abu Dhabi sovereign wealth fund ADQ since 2021, and ORE owner Orascom Development Egypt (ODE) pulled the plug on acquisition talks last week without citing a reason, putting to bed SODIC’s offer to acquire 100% of ORE for almost 2.5 billion EGP. (Al Mal)
Gig-Egypt is on course to acquire at least 95% of AIG Egypt
After the latter’s largest shareholder agreed to sell its stake in an upcoming mandatory tender offer (MTO) approved by the Financial Regulatory Authority (FRA). AIG Limited Holding, which owns 95.02% of its Egyptian subsidiary, accepted in December Gig-Egypt’s acquisition offer. The buyer is set to merge 99% of AIG Egypt with Gig-Egypt if the transaction goes through. (FRA)
The consortium of Orascom Construction, Engie, and Toyota Tsusho has reached financial close on its 500 MW wind farm in the Gulf of Suez near Ras Ghareb
The Japan Bank for International Cooperation (JBIC) will provide non-recourse financing for the project, along with Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale, and the European Bank for Reconstruction and Development. HSBC Egypt is the working capital bank and onshore security agent. (Hapi Journal)
Kuwait Investment Authority wants to up its stake in AAIB
The Kuwaiti sovereign wealth fund is reportedly studying the prospects of buying an additional stake in the Arab African International Bank (AAIB) which would make it the lender’s largest shareholder. (Al Borsa)
President Abdel Fatth El Sisi and Saudi Crown Prince Mohammed bin Salman sat down for suhoor after El Sisi landed in Jeddah yesterday morning
El Sisi’s trip comes as Cairo seeks to secure billions USD in FDI from Riyadh against the backdrop of a major diplomatic realignment in the region. Riyadh and Cairo have been working to ease tensions in the region including by improving ties with Syria and Turkey, showing signs it could bring Iran in from the cold. (Reuters)
NBE, Banque Misr raise 67 billion EGP from new CDs sale in one day
The National bank of Egypt (NBE) has received 48 billion EGP in proceeds from the sale of the new certificates of deposit (CDs) in one day. Meanwhile, Banque Misr has sold nearly 19 billion EGP worth of the new CDs. On April 2nd, the largest two state-run banks, NBE and Banque Misr, started selling a new three-year CD at an annual interest rate of 22% to be paid in the first year, 18% for the second year, and 16% for the third one. The lenders also offered another three-year CD with a fixed annual interest rate of 19%. (Al Mal & Bloomberg Asharq)
You can now apply to the second round of the Smart Green Projects Initiative until the end of May
According to a Planning Ministry statement. Eligible projects must use technology solutions to address environmental issues, present evidence of feasibility or innovation, and provide a written acknowledgement that no awards have been received during the initiative’s first round, among other requirements. (Hapi Journal)
As a precaution against inflation, real estate agents in Egypt resort to pricing in US dollars and selling in Egyptian Pounds
Some real estate companies have resorted to use the "dollar" as a tool to hedge against the risks of rising costs after the deterioration of the Egyptian pound and the rise in inflation to record levels, while others went to cancel some customers' reservations and return their checks to maintain profit margins. (Bloomberg Asharq)
The goal of real estate companies in linking pricing to the dollar is to maintain profit margins
Since their contracts with contracting companies that implement projects include conditions to compensate those companies in the event of a change in the exchange rate and an increase in costs. The buying and selling movement in the Egyptian market is currently characterized by a very slow pace, due to the increase in lending costs, and the impact of record inflation numbers on the purchasing power of customers, so some companies resorted to hedge against the currency's decline and the increase in costs. (Bloomberg Asharq)
Egypt's net foreign assets drop for 2nd consecutive month in February
Egypt's net foreign assets (NFAs) plunged for the second month in a row by 49.8 billion EGP in February. NFAs hit a negative 704.23 billion EGP in February from a negative 654.43 billion EGP at the end of January. It is worth mentioning that Egypt’s NFAs dropped by 160.2 billion EGP in January. (Bloomberg Asharq)