Cairo – Mubasher: NBK Capital, the investment arm of Kuwait’s NBK, maintained its “Buy” recommendation on Palm Hills Development (PHD).
The evaluation came after the company said it recorded EGP 589 million sales in its Capital Gardens project.
The number of sold or reserved units amounted to 411, or 95% of the total number of units offered in the first week of reservation, the company said.
The development of ‘Capital Gardens’ is being carried out by PHD in partnership with Madinet Nasr Housing.
Palm Hills announced on 2 December signing a Memorandum of Understanding (MoU) with Madinet Nasr to carry out the new project, which is located in New Cairo over an area of 103 feddans.
The project will be carried out over four phases, the first of which will be started this month.
Capital Gardens is being co-developed by PHD and MNHD on a 434K sqm land plot in east Cairo. PHD earlier stated that the estimated revenue potential from this project is between EGP 4.6 billion and EGP 5.5 billion over 9-10 years. PHD’s share in the project will be 64%, with MNHD retaining the remainder for its land contribution, according to NBK Capital.
“We see the continued momentum in the pre-sales from the project, which accounts for around 6% of PHD’s total EV in our valuation, positively,” said NBK Capital.
