Heliopolis Company for Housing & Development is close to selling 10% of the company’s share to a private equity specialised in real estate development, or an alliance between a strategic investor and a real estate development company, in return for taking over the company’s management by the end of next month.
The company’s Chairperson, Hany El-Deeb, told Daily News Egypt that they will send invitations to strategic investors in the real estate sector and real estate development companies interested in managing the company by the end of this week, in preparation for meeting interested parties early next week.
The company will then prepare a short list of investors and companies qualified for the management process, to be followed by the launch of the prospectus early next October, and then choose the winning bid that will make an offer to buy 10% of the company’s shares.
El-Deeb added that the board of directors is working intensively to complete all procedures to sell the right of management by 10% as soon as possible. The Holding Company for Construction and Development and the Heliopolis Company for Housing & Development have been commissioned to prepare the detailed tender.
Managing Director of the Sixth of October for Development and Investment (SODIC), (the third largest listed developer in Egypt), Magued Sherif, said in an interview with Reuters that his company was interested in principle in the stake to be offered by Heliopolis Housing and Development as well as its management. The terms of the offering are not clear, he noted.
Heliopolis Company for Housing & Development aims to achieve a net profit of about EGP 1.12bn during the fiscal year (FY) 2019/20, compared to EGP 376.3m at the end of last FY 2018/19.
