The Clap
Palm Hills Development company (PHDC) plans to inject EGP 4.5 billion into construction operations this year.
The deets
The company targets executing 4 more stages of its projects in East and West of Cairo, most notably “Badya”. The company also plans to increase its sales by EGP 20 billion.
The company diversifies its financing sources between Issuance of “Sukuk”, securitization, and bank loans, I issued a worth of EGP 3.2 billion in “Sukuk” issuance.
Palm Hills intends to issue a securitization operation for EGP 2 billion. The first one will be in May targeting EGP 400-500 million, the other will be before the end of the year for EGP 1.5 billion.
Why this matters
According to Palm Hills CEO Yassin Mansour, the company’s focus is on expanding in its existing projects this year with no intentions to acquire new land. He expects that real estate prices will spike by 11%, due to inflation.
Claps Class
Securitization is the process of converting financial assets to more tradable and liquid assets. Securitization supports the available liquidity for the company and a financing source without more burdens on the balance sheet. Real estate companies resort to this kind of financing through selling financial assets as outstanding debt to third parties in the form of bonds. In return, the company gains quick liquidity.
