Combined land assets to exceed 12 million sq m upon shareholder approval
CAIRO: Sixth of October Development and Investment Company (Sodic) board members approved Monday the acquisition of 100 percent of Palm Hills Development Company (PHD) through a share swap in a deal estimated at LE 1.9 billion.
Pending shareholder approval, Sodic will issue 25.4 million new shares to be exchanged for 3.1 million PHD shares. The deal will bring the combined land possessions of the two companies to about 12 million square meters and diversify Sodic s plot location portfolio to areas along the North Coast. The company s land assets are now limited to an almost 6 million square meters in Sheikh Zayed and a 1 million square meters plot near the new American University campus in New Cairo.
The PHD acquisition announcement comes two months after its shareholders approved a LE 1.1 billion capital increase to finance the acquisition of 984,900 square meters of land, including a 858,500 square meters plot in New Cairo on Road 90 adjacent to the new American University campus and the Katameya Dunes project.
A senior Sodic official declined to comment on the deal pending a press conference to be held Sunday.
The fund-raising came by way of private placement to a Gulf-dominated investor group, according to Sodic Director of Business Development Ahmed Badrawi. Speaking to The Daily Star Egypt, he added the recent influx of activity is the product of new ownership and management.
We have been a very dormant company for a couple of years now, he says. Last year, there was a change in ownership. This year, there was a change in management. And I think this capital increase shows a change of philosophy.
Sodic officials expect the population of New Cairo to exceed 3 million in 2016. The company plans to develop the acquired New Cairo land to provide residential, retail and office services on a five year construction schedule to be initiated by H2, 2007, says Badrawi.
