Compass, a leading value investment firm, announced on Wednesday that portfolio company Bonyan for Development and Trade (Bonyan) has successfully increased its capital from EGP 275m to EGP 654m, which has been previously approved by the General Authority for Investment and Free Zones (GAFI).
Minister of investment and international cooperation, Sahar Nasr met with Shamel Aboul Fadl, chairperson of Compass on Thursday, among other members from the investors community where she affirmed that the ministry is constantly working on developing services in the investors services centre to facilitate investment, which contributes to the establishments of new companies and the current companies to expand their investments and increase their capital, according to a statement of the company on Wednesday.
Bonyan, a specialty real estate developer operating in Egypt, is the owner of the award-winning Designopolis mall, said the statement, noting that the company was originally developed as a specialty furniture mall, Designopolis is an open-air asset designed by renowned architectural firm Skidmore, Owings and Merrill built on a 117,000 sqm plot of land located in West Cairo in Sheikh Zayed area.
Compass will repurpose the 1 km long promenade of some 300 shops into a complete lifestyle destination that includes shopping, dining, office space, and entertainment activities for the entire family.
“Bonyan’s capital increase is the first step toward delivering on our previously communicated growth plans for the company at the time of acquisition,” said Aboul Fadl adding, “our aim is to equip Bonyan with the necessary tools to transform the asset into an operational lifestyle destination within a year, including bringing on a capable management team, defining clear growth strategies and building an efficient capital structure.”
The capital increase was fully subscribed by Sky Realty Holding Limited, a subsidiary of Compass, which owns 99.9% of Bonyan. In July of 2018, Compass completed the purchase of 100% of Bonyan from Qalaa Holdings subsidiary MENA Home Furnishings to Compass.
Compass derives value from portfolio companies largely through the retention of industry veterans, streamlining operations, improving business models, and strengthening financial positions.
“We look forward to bringing our first commercial real estate project online and start generating returns to our investors. In parallel, we are actively building a platform from which to launch additional investments in the sector at this opportune moment in Egypt’s economic recovery,” Aboul Fadl added.