Heliopolis Company for Housing and Development registered the largest land portfolio in terms of value recording EGP 72.744bn with an area of 29m sqm among six real estate companies, according to a report by Pharos Holding for Financial Investments. TMG ranked second with a land portfolio of 23m sqm valued at EGP 45.935bn.
The research included Madinet Nasr for Housing and Development, Heliopolis Company for Housing and Development, Emaar Misr for Development, Talaat Moustafa Group (TMG) Holding, Orascom Hotels and Development, and Egyptian Resorts Company.
Madinet Nasr came in third place with a land portfolio of 8m sqm worth EGP 22.222bn, followed by Emaar Misr with a land portfolio of 7m sqm worth EGP 12.331bn. Orascom owns about 28m sqm of land worth EGP 8bn, while the Egyptian Resorts Company ranked last with a land portfolio of 4m square meters worth EGP 2.342bn.
The land pricing relied on the specific prices of each area, as the price of a square metre in east Cairo reached EGP 2,625, while it costs EGP 2,200 in west Cairo, EGP 2,000 in central Cairo, EGP 1,500 per square meter in North Coast, and EGP 347 in the Red Sea coast.
Pharos noted that these prices are lower than the prices set by the Urban Communities Authority, which sells lands in New Cairo for EGP 5,500 per square metre.
The research concluded that the net asset value per share reached EGP 164.34 for Heliopolis Company, dropped to EGP 47.58 for Madinet Nasr, EGP 26.94 for TMG, EGP 19.11 for Orascom, EGP 4.07 for Emaar, and EGP 2.68 for Egyptian Resorts.
The research also calculated the market value of each square metre owned by the selected companies based on market pricing. They value stood at EGP 2,019 in Emaar, EGP 1.197 in Madinet Nasr, EGP 760 in TMG, EGP 362 in Heliopolis, EGP 268 in Egyptian Resorts, and EGP EGP 47 in Orascom.
Pharos released a research on the net asset value of six real estate companies in an attempt to examine the conditions of companies in the sector after recent economic reform decisions, such as the flotation of the Egyptian pound and the change of pricing strategy to cope with the increasing cost of building materials.
The research calculated the net cash, financial receivables, and the remaining pieces of land in each company’s portfolio.
The research depended on calculating the net asset value of companies on discounted receivables (50% of the invoiced amount) and the land portfolio, as well as the transfer of any debt in foreign currency into local currency at EPG 17 per US dollar.