Table of Contents
Key Points
- Palm Hills Developments plans to increase its stake in Macor Hotels to 69.8%, acquiring a 9.5% interest for EGP175.58 million ($3.63 million).
- The firm recently secured a $212.3-million loan to fund the ambitious Badya smart city project, enhancing its expansion strategy.
- In H1 2024, Palm Hills reported revenues of EGP10.94 billion ($225 million), a 58% increase from EGP6.92 billion ($142.6 million) in H1 2023.
Palm Hills Developments, led by Egyptian billionaire Yasseen Mansour, is increasing its stake in Macor Hotels as part of the company's aggressive expansion into the hospitality sector.
Palm Hills, which already owns 60.3 percent of Macor Hotels, will raise its ownership to 69.8 percent by acquiring a 9.5-percent stake from El Mansour and El Maghraby for Investment and Development for EGP175.58 million ($3.63 million).
This acquisition aligns with Palm Hills' broader strategy, as the real estate giant recently secured an EGP10.3 billion ($212.3 million) loan to fund its ambitious Badya project, Egypt’s first smart city. The company also plans to invest EGP22 billion ($455 million) in construction in 2025.
Capital restructuring on the horizon
In addition to the Macor Hotels deal, Palm Hills has proposed a capital reduction by writing off 61.68 million treasury shares and acquiring 88.2 million shares as treasury stock, which accounts for up to three percent of its issued shares.
This proposal will be presented at an extraordinary general meeting (EGM), expected to be called soon.
Palm Hills' stellar financial performance
Palm Hills, Egypt's second-largest listed real estate firm and a subsidiary of Mansour Group, continues to demonstrate strong financial performance, solidifying its position as a market leader.
Under Yasseen Mansour's visionary leadership, Palm Hills has cemented its market dominance. Mansour, who holds a 10.17-percent stake, leverages his expertise within Mansour Group, one of Egypt's largest conglomerates.
In the first half of 2024, Palm Hills posted revenues of EGP10.94 billion ($225 million), up 58 percent from EGP6.92 billion ($142.6 million) in the first half of 2023, driven by increased unit sales and project handovers, as Palm Hills capitalized on Egypt’s thriving real estate market.
Palm Hills' asset base expanded by 27.9 percent to reach EGP95.03 billion ($1.96 billion) in the first half of 2024, solidifying its position as one of Egypt’s largest real estate groups.
