Cairo – Mubasher: NBK Capital said Thursday it continues to view Sixth of October Development & Investment Co. (SODIC) stock one of its preferred picks in Egypt’s real estate sector.
The research arm of Kuwait’s NBK maintained its Buy recommendation on the stick, with a fair value estimate of EGP 8.68.
SODIC has been awarded a 655-feddan land plot in east Cairo to develop a mixed-use project by Heliopolis, on a revenue sharing basis. SODIC’s share would be 70% for the residential component and 69.8% for the commercial component.
“We view this development very positively for SODIC,” noted NBK Capital.
“There have been some concerns in the market regarding SODIC’s land bank formation in the recent past and this deal should help remove any such overhang on the stock. We note that SODIC currently has around 1.8 million sqm of unlaunched land bank in Egypt (excluding the Heliopolis deal) which provides a sales backlog of 10-12x its annual revenue,” said the research firm.
