IHG Hotels & Resorts is expanding its presence in Egypt with four new Hotel Indigo branded properties

Newsletter

28 Jul 2021

IHG Hotels & Resorts is expanding its presence in Egypt with four new Hotel Indigo branded properties

For our top talks today, first, IHG Hotels & Resorts, one of the world’s leading hotel companies, is expanding its presence in Egypt with four new Hotel Indigo branded properties. As part of a management agreement signed with real-estate specialists Mountain View, IHG will introduce the world’s first globally branded boutique hotel brand to Egypt in North Coast, iCity New Cairo, 6th of October City and Ain El Sokhna. It is noteworthy that Mountain View is emerging as one of Egypt’s most prolific names in real estate with 15 years of experience developing top-tier housing and upscale gated communities in Egypt’s key new urban centers.

Second, Contact and Sakneen sign a partnership that allows financing the purchase of real estate in Egypt. One of the most important features offered by the “Sakneen” platform is the ability to inspect the property using 3D imaging technology, which helps the property searcher to see its details.
We believe that this partnership will create a boom in the Egyptian real estate market, especially with the use of search technology, interactive display and easy access to financing, as this partnership will be the first step in changing the concept of buying and selling real estate in Egypt.
In the light of Egypt’s Healthcare sector, GlaxoSmithKline (GSK Egypt) announced that GlaxoSmithKline plc will separate its pharmaceuticals and vaccines business from its consumer healthcare business globally and establish two new independent UK-based companies.
Accordingly, a new company focused on consumer health products will be established in Egypt, while GSK Egypt will continue to produce and market pharmaceuticals and vaccines.
With this in mind, we believe that the education and healthcare industry has succeeded in overcoming the shock of Corona during the new year, with the increase in investor sentiment in the two sectors and the implementation of a number of influential acquisitions recently.
Most notably the Sovereign Fund and 3 other government agencies establishing a platform for educational investments worth 1.75 billion EGP. While in the healthcare sector, Misr Capital, the investment arm of Banque Misr, launched the “Nile Misr Healthcare” platform, with a value of 380 million USD. Noting that the most important famous deal this year was the Abu Dhabi Holding Company’s ability to acquire Amoun, the giant pharmaceutical industry in Egypt, in addition to the fierce competition to seize the Alexandria Medical Services Company.
And for Egypt’s mining and gold exploration sector, Barrick Gold Corporation, the world's second-largest gold miner by reserves, inks four gold exploration deals in Egypt's Eastern Desert.
The Canadian firm will explore for gold in 19 new blocks in the Eastern Desert with estimated investments of 8.8 million USD after winning an international tender launched by the ministry in 2020. We strongly believe that 2021 is the golden year of Egypt’s mining sector proving that Egypt’s mining potential is above any crisis.
Moving to the companies’ talks, EFG Hermes announced the successful completion of the first issuance of securitization bonds for SODIC Securitization LLC by issuing 343 million EGP worth of securitization bonds, guaranteeing a portfolio of 384 million EGP.
We believe that the securitization bonds issued by SODIC received great demand from investors, as the subscription value was covered more than once, which reflects the strength of SODIC's financial and operational performance in the Egyptian market.
Moreover, the European Bank for Reconstruction and Development (EBRD) announced its approval to provide a loan amounting to 29.6 million USD in favor of the October Dry Port Company, an Egyptian joint stock company.
The proposed loan is part of a total investment package of 60 million USD to finance the design, development, construction, operation and maintenance of the 6 October Dry Port, which is the first dry land port in Egypt in the Sixth of October City. We believe that the project will be a catalytic investment for the city.
Finally, the board of directors of Raya Contact Center approved the establishment of a wholly-owned subsidiary, which will be based in the US.
It is worth mentioning that Raya Contact Center achieved net profits of 2.04 million EGP during the first quarter of 2021, down from 10.3 million EGP in the year-ago period, including minority shareholders’ rights.