Palm Hills Developments (PHD), Egypt's second-largest publicly traded developer, said yesterday it was in talks to expand on a major deal with Abu Dhabi's Burooj Properties.
PHD said it was discussing selling more properties to Burooj, which bought 425 units in a project just outside Cairo for 315 million Egyptian pounds. Yasseen Mansour, PHD's chief executive, told Credit Suisse no agreementhad been finalised and that PHD was looking at deals with other companies in the region. But PHD was still in negotiations to expand on the deal with Burooj, which is the property arm of Abu Dhabi Islamic Bank, said Ahmed Badr, a property analyst at Credit Suisse in Dubai. Shares of PHD yesterday fell 0.96 per cent to 5.18 pounds on the Egyptian Exchange - nearly 17 per cent below Credit Suisse's target price of 6.06 pounds.
PHD remains Credit Suisse's top property pick, according to a note sent yesterday to clients.
"They are expanding their target market," Mr Badr said of PHD. "They are targeting Egyptians who are living here [in the UAE], who can get mortgage finance deals from here at much lower rates."
Mortgages in the UAE carry interest rates of about 7 per cent, compared with 12.5 per cent in Egypt. There are also no currency risks because Egyptian expatriates are typically paid in dirhams and would be making purchases in dirhams from PHD via an Abu Dhabi property company.
But Egyptian residents of the UAE are not the only targets for Egyptian property developers. Other Arab nationalities have also recently shown interest in or bought property in Egypt, Mr Badr said. Egypt's has been the best-performing property market in the region in recent times, he said.
PHD this month reported second-quarter revenue of 332 million Egyptian pounds, up 37 per cent from the same period last year. Profit declined by 12 per cent in the period because of higher interest costs, larger tax provisions and increased minority interests.
halsayegh@thenational.ae
The years Ramadan fell in May
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
Top 5 concerns globally:
1. Unemployment
2. Spread of infectious diseases
3. Fiscal crises
4. Cyber attacks
5. Profound social instability
Top 5 concerns in the Mena region
1. Energy price shock
2. Fiscal crises
3. Spread of infectious diseases
4. Unmanageable inflation
5. Cyber attacks
Source: World Economic Foundation
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)