The Authorities Pension Fund of Norway (also called the Oil Fund), the most important sovereign wealth fund on this planet, elevated its investments in Egyptian shares to $530.2m final yr, distributed on 41 listed corporations. The actual property sector has the big share of the Norwegian fund’s investments within the Arab area, with whole investments of $297.7m value shares in 13 Arab actual property corporations, topped by Talaat Moustafa Group (TMG).
Oil Fund’s investments in 7 Egyptian actual property companies quantity to $96.5m
Given the latest progress in the actual property sector in Egypt, the Oil Fund elevated its investments in Egyptian actual property corporations final yr, with whole investments amounting to $96.5m in seven companies. TMG had the most important share of them.
The fund’s investments in TMG recorded $36.3m value shares, representing three.46% of the corporate’s shares. Madinet Nasr Housing and Growth got here second with investments of $21.5m value shares, representing four.97% of the corporate’s shares. Heliopolis Firm for Housing and Growth ranked third with investments of $15.2m value shares, adopted by Sixth of October Growth and Funding Firm (SODIC) with investments of $ eight.1bn value of shares, whereas Palm Hills Growth had $7.3m value shares, after which Orascom Growth Egypt with $6.6m value shares. The United Firm for Housing and Growth had the least investments from the Oil Fund, amounting to about $1.5m value shares, representing 2.98% of the corporate’s shares.
10% improve in TMG’s web income in 2019
TMG’s web income elevated to about $1.9bn on the finish of 2019, a progress of 10% in comparison with $1.7bn in 2018.
The group achieved 7% progress in revenues, to succeed in EGP 11.7bn, in comparison with EGP 10.9bn in the identical comparability interval.
The corporate’s gross income for the fiscal yr ending 31 December 2019 elevated to EGP four.5bn, in comparison with about EGP 4bn within the comparability yr.
On the unbiased enterprise degree, the monetary statements of TMG Holding confirmed a rise in web income by 52% to EGP 471.1m, in comparison with EGP 309.8m. Revenues achieved 22% progress within the final fiscal yr to EGP 1.1bn, in comparison with EGP 948.7m within the comparability interval.
TMG’s actual property gross sales file EGP 20.4bn in 2019
TMG introduced early January that it had achieved actual property gross sales of EGP 20.4bn final yr.
The group stated in an announcement to the Egyptian Trade, that its gross sales had slight lower in 2019 by EGP 900m (four% solely), as a result of slowdown in the actual property market within the second half of 2019, which prompted some builders to supply promoting affords that embody longer instalments with no down funds, or minimize costs to extend gross sales.
The group attributed the slight lower in its gross sales to the acquisition of 4 colleges in Al Rehab and Madinaty cities in 2018, whereas promoting one college in 2019 for EGP 300m. It additionally began providing Celia mission’s models within the New Administrative Capital on the market in 2018, which benefited from the good demand for the group’s initiatives in new geographical areas.
Al Rehab: first built-in metropolis by the personal sector in Egypt
Al Rehab, established by TMG, is the primary built-in residential metropolis by the personal sector in Egypt, because it was developed to accommodate about 200,000 individuals, on an space of 10m sqm.
Al Rehab affords high-end housing and huge inexperienced areas, along with an built-in set of companies, reminiscent of purchasing centres and markets, healthcare, worldwide colleges, sports activities and social golf equipment, personal exterior and inner transportation community, and different companies.
Madinaty: largest personal sector mission within the Center East
In 2006, Hisham Talaat Moustafa laid the muse stone for establishing Madinaty metropolis, the most important built-in city mission established by the personal sector in Egypt and the Center East, on an space of eight,000 feddan (33m sqm), to incorporate 120,000 housing models. Its inhabitants is predicted to succeed in a million individuals.
Madinaty has numerous residential areas, together with villas and buildings, broad inexperienced areas, and golf programs, along with the day by day companies for residents and leisure areas. It additionally contains on its outskirts many companies to satisfy the wants of each Madinaty and neighbouring cities.
Celia: largest personal sector mission in New Capital
TMG invested within the New Administrative Capital to determine Celia, the most important personal sector mission so far within the metropolis, on an space of 500 feddan, with investments amounting to EGP 33bn.
Talaat Moustafa’s curiosity within the New Capital caught the eye of different Egyptian and Arab buyers to town that the Egyptian authorities is constructing.
New Capital is completely centralised between Madinaty, New Cairo, and Badr Metropolis, and it is just 60 km from Ain Sokhna.
Life in Celia stands out in many various kinds. It contains worldwide colleges, sports activities golf equipment, a Roman theatre, malls, and different amenities and companies.
Oil Fund’s historic outcomes
“2019 has been an excellent yr for the fund. The market worth of the fund elevated by 1,832 billion kroner ($191.98bn) to 10,088 billion kroner($1057.17bn) on the finish of the yr. That is the best improve in worth in a single yr within the fund’s historical past”, says Øystein Olsen, Chair of Norges Financial institution’s Government Board.
The fund amounted to a complete of 10,088 billion kroner as at 31 December 2019, of which 70.eight p.c was invested in fairness, 2.7 p.c in unlisted actual property and 26.5 p.c in fastened revenue.
The krone depreciated towards a number of of the principle currencies in the middle of the yr. This contributed to a rise within the fund’s worth of 127 billion kroner. The switch of capital from the Norwegian authorities was 18 billion kroner for the yr as an entire.