Cairo – Mubasher: Orascom Development Egypt on Monday said that the US-based commercial real estate services and investment firm CBRE Group has evaluated some of the Egyptian company’s assets at a value of $2.1 billion, which is 42 times higher than the book value.
The American firm has set the market capitalisation of the remaining lands of El Gouna at nearly $1.82 billion (EGP 32.5 billion), Orascom added in a statement to the Egyptian Exchange (EGX).
CBRE Group also evaluated the company’s owned hotels in El Gouna at $303.6 million (EGP 5.4 billion), according to the statement.
The fair value for the hotels is 87% lower than the estimated market value of $39.3 million in June, the company indicated.
In September, Orascom Development’s board of director agreed to raise the company’s issued capital to EGP 1.13 billion from EGP 1.108 billion to finance the company’s motivation and reward systems.
The board approved an EGP 22.16 million capital increase by issuing 22.16 million shares at a nominal value of EGP 1 per share.
The company previously reported a 4.7% year-on-year increase in consolidated profits for the first half of 2018, recording EGP 184.61 million from EGP 176.29 million.
Revenues grew to EGP 873.8 million in the six-month period ended June, compared to EGP 599.87 million.
