TMGH con­sid­ers new pro­ject as com­pany ex­pands in Egyp­tian mar­ket

Oc­cur­rence of prop­erty bub­ble is un­likely, says Hisham Talaat Mostafa

The Daily News Egypt - - Business -

Talaat Moustafa Group Hold­ing (TMGH) is plan­ning to of­fer EGP 300bn ($16.74bn) pro­ject, the com­pany’s CEO and manag­ing di­rec­tor Hisham Talaat Mostafa an­nounced.

The stag­na­tion in the Egyp­tian real es­tate sec­tor or the oc­cur­rence of a prop­erty bub­ble in the mar­ket is un­likely, he added in a press con­fer­ence.

The pro­mo­tion of the “real es­tate bub­ble” idea is but a tool used by the own­ers of small com­pa­nies and spec­u­la­tors to im­pact the Egyp­tian real es­tate mar­ket and cover up for their lack of com­pet­i­tive­ness, Hisham said.

The high de­mand for new units of­fered by the gov­ern­ment is the big­gest ev­i­dence against such al­le­ga­tions, the top of­fi­cial noted.

Hisham called for de­vel­op­ers to re­visit their pay­ment plans to be com­pat­i­ble with peo­ple with av­er­age in­come, in­stead of re­sort­ing to ru­mours.

TMGH re­ported a 13% year-overyear (y-o-y) in­crease in con­sol­i­dated prof­its for the first nine months of 2018.

Net profit reached EGP 1.18bn in the nine-month pe­riod ended Septem­ber, ver­sus EGP 1.05bn in prof­its for the year-ago pe­riod.

In re­cent re­search note, Pharos Re­search has re­it­er­ated their ‘Over­weight’ rat­ing rec­om­men­da­tion for Talaat Moustafa Group Hold­ing (TMG Hold­ing) at a fair value (FV) of EGP 16.50 per share.

This was mainly driven by the com­pany’s com­mer­cial built-up area (BUA) in Mad­i­naty, Pharos said.

The com­pany has re­cently re­ported that its real es­tate sales hiked by 62% y-o-y at the end of 2018.

Sales amounted to EGP 21.3bn at the end of last De­cem­ber, ver­sus EGP 13.1bn in 2017,TMG Hold­ing said in a state­ment to the Egyp­tian Ex­change (EGX).

The lead­ing prop­erty de­vel­oper has de­liv­ered around 90,000 units since it be­gan its busi­ness in Egypt and the Mid­dle East, ac­cord­ing to the state­ment.

The Egyp­tian real es­tate firm has sold res­i­den­tial units at a value of EGP 18.3bn in 2018, ver­sus EGP 9.5bn in the prior year.

The surge in 2018 sales was mainly driven by an es­ti­mated rev­enue of EGP 12bn from Celia New Cap­i­tal, launched last June.

TMGH re­ported a 13% year-on-year in­crease in con­sol­i­dated prof­its for the first nine months of 2018

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