Competition over management of Heliopolis Company for Housing & Development (HHD) soared after the company had invited direct investment companies and alliances specialised in real estate development for the pre-qualification of the company’s management. Several major companies expressed interest in taking the task.
Informed sources told Daily News Egypt that about eight companies are seriously considering the acquisition of 10% of HHD shares to manage the company, including Emaar Development, SODIC, and BPE Partners.
The company’s Chairperson Hany El-Deeb told Daily News Egypt that several real estate developers and direct investment companies have expressed their interest in acquiring a 10% stake of the company, while other companies are in discussion with HHD to inquire about the management and the procedures required in case they want to bid for managing the company.
He added that a short list of qualified companies or alliances are to be selected by mid-November, in preparation for issuing the prospectus by early December.
The pre-qualification allows these companies to submit their technical and financial bids to explore the management tasks in parallel with the purchase of 10% stake of HHD.
Alaa Sabaa, co-founder of BPE Partners, told Daily News Egypt that his company will send HHD a memo expressing its interest in acquiring a 10% stake and managing the company, as a prelude for completing the procedures, buying the prospectus, and compete for the company’s management.
This seems to be a good opportunity and an important step through which the government, represented by the Ministry of Public Enterprises, will involve the private sector in development and investment operations in the real estate sector.
Hashem El-Sayed, CEO of the Egyptians Real Estate Fund, said that his company has studied the feasibility of the management of HHD, but its future projects reduce the attractiveness of its management process, so he ruled out that his company will be among competitors.