UPP takes 5.5% stake in Egypt firm

dubai — Union Properties on Tuesday announced that UPP Capital Investment, its fully owned investment arm, bought entire 5.55 per cent stake of Aabar Investment in Egypt-based Palm Hills for 525.3 million Egyptian pounds ($30 million).

The average price of one share has been estimated at 4.1 Egyptian pounds. After striking the deal, Union Properties’ stake in Palm Hills would grow to 16.51 per cent from 10.96 per cent.

In 2017, Palm Hills Development Company achieved record revenues of 6.6 billion Egyptian pounds, up by 17 per cent than the year before, while its net profit reached more than 936 million Egyptian pounds for the same period with an increase of 19 per cent than the year before.

Total sales reached around 10.5 billion Egyptian pounds, up by 24 per cent than the year before. The company’s capital is 1.64 billion Egyptian pounds, distributed across 2.3 billion shares for a nominal value of 2 pounds per share.

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.”

— business@khaleejtimes.com