Cairo - Mubasher: NBK Capital MENA Research maintained its buy recommendation on the stocks of Palm Hills Development.
The recommendation followed the company's announcement of signing a contract with SWA Group for developing the master plans of the 2.1 million sqm co-development project with NUCA.
The project would have a BUA of around 1.8 million sqm, including 9-10K residential units. The total revenue potential is likely to be EGP 33-35 billion (including commercial components), with an estimated construction cost of EGP 12 billion.
NUCA’s share in the project will be 42% for its land contribution, comprising up to EGP 10 billion in cash payable over 13 years and an in-kind share of up to 150K sqm BUA.
Palm Hills has previously stated that it is looking to launch this project soon, with pre-sales starting in the third quarter of 2016.
