Vice Chairperson and CEO of Egyptians Abroad for Investment and Development (ABRD), Hashem El Sayed, said that his company is close to acquiring a 60% stake in Edge Developments and project management in a deal worth EGP24m.
In turn, this increases the total share of ABRD in Edge from 15% currently to 75%.
He pointed out that the acquisition process is aimed at benefiting from the real estate development projects carried out by Edge Developments. This company has a good portfolio of projects and land in the Smart Village that is developing. It also includes promising growth opportunities, which will inevitably benefit the company.
ABRD is currently appointing an independent financial advisor to evaluate the shares of Edge Developments and a project management in preparation of the acquisition.
Moreover, the financial regulatory authority (FRA) board of directors agreed to increase the issued and paid-up capital of ABRD from EGP 124,400m (distributed over 49.760m shares) to EGP 260m (distributed over 104m shares).
This marks an increase of EGP 135,600m (distributed over 54,240m shares). The capital increase will be designated for old shareholders, except for EGP 11,200m that will be financed from the profit that is part of the company’s financial position as of March 31, 2019.
El Sayed pointed out that the EGP 116m will be used to raise the issued capital designated for shareholders worth EGP 124,400m in activating the investment funds for ABRD to start establishing investment funds of its own.
The company has conducted feasibility studies for three funds in logistics, educational services, and medical services. The target size of each of the funds is projected at EGP 2bn.
The company will launch the logistics fund first and will allocate EGP 40m of the capital increase for that purpose. It will be done by setting aside the figure for the subscription in the funds’ shares. The company will also set aside EGP 40m for the medical fund and EGP 36m for the educational services fund.
The remaining balance from capital increase shares of old shareholders, worth EGP 24m, will be used to pay off ABRD’s debt.
El Sayed also shared that the company has huge investments in projects it is currently developing that will support the company’s results in a positive way in the coming years.
He pointed out that the Emerald Park Project in the Fifth Settlement, on an area of 101,000 sqm, is a villa complex. The area will be 25% buildings and 75% greens and entertainment facilities.
The project is forecasted to return good revenues. This is in addition to the company’s residential project on the Maadi Corniche with a total investment of EGP 1.5bn on an area of 100,000 sqm.
This project includes the establishment of a commercial and hotel building with a capacity of 1,000 rooms.
He added that ABRD’s strategy is focused on the rapid completion and delivery of units for a number of existing projects, alongside starting new ones.