Cairo – Mubasher: NBK Capital, the investment arm of National Bank of Kuwait, maintained its ‘Buy’ recommendation on Palm Hills for Development (PHD), with a fair value estimate of EGP 2.85.
The evaluation came after PHD announced signing a contract with NUCA to develop a mixed-use project on a 500-feddan land (c.2.1 million sqm) plot in East Cairo, on a revenue sharing basis.
The project would have a built-up area 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 estimated construction cost amounting to 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, according to NBK Capital.
“We see the finalization of the deal favorably for PHD, as it enhances visibility on the company’s future pipeline,” said NBK Capital.
