Dubai: Union Properties investment arm acquires stake in Egypt project
Real estate developer, Union Properties, announced that UPP Capital Investment, its fully-owned investment arm, acquired a strategic stake of 5.68% of the total shares of Palm Hills Development, based in Egypt and listed on the Egyptian Stock Exchange and London Stock Exchange.
Established in 2005, Palm Hills Development focuses mainly on developing residential and integrated commercial developments, small cities, urban communities, hotels and luxury resorts. The company aims to continue its growth and expansion to quickly become a key player in the real estate sector in the region.
The company currently has a portfolio of 26 projects in various stages of development, with the total area spanning over 27 million square meters located in Egypt.
Commenting on the acquired stake, Ahmed Yousef Khouri, Group CEO of Union Properties, said: “Palm Hills Development is one of the leading real estate developers in Egypt. Acquiring this strategic stake in the company marks another step in Union Properties’ ambitious plan to enhance our investments in and out of the UAE, diversify our revenue streams, expand our business, and venture into new markets.”
He added: “As Union Properties enters a new growth phase, we are strengthening our expanding investment portfolio by acquiring significant assets that are diverse, dynamic and successful. Palm Hills Development Company has the ability to continue its steady growth into an important regional player in the MENA real estate sector.”
During the first nine months of 2017, Palm Hills Development Company achieved revenue of EGP4.8bn, while its net profit after minority interest reached EGP467mn for the same period. New sales grew year-over-year by 44% for the same period to reach more than EGP8.1bn. The company’s capital is EGP1.64bn, distributed across 2.3 billion shares for a nominal value of 2 pounds per share.
As part of its diversification strategy, Union Properties has recently established UPP Capital Investment as the company’s investment arm. UPP Capital Investment is committed to both direct and indirect real estate investments and will use its expertise to support the group’s long-term diversification and growth strategy.