The Heliopolis Company for Housing and Development (HHD) has announced it is looking to sell 130 feddan of its land stock, worth a total of EGP 1.2bn in fiscal year (FY) 2020/21.
The company said that this will come in addition to the sale of 100 housing units from its various residential projects, worth a total value of EGP 132.3m.
The move comes as part of HHD’s plan to amend its financial structure, with the company reporting it is currently about EGP 3bn in debt. It noted that it anticipates reducing this debt to EGP 1.7bn through the sales, so that the company is not burdened with the interest of these debts with the severe shortage of liquidity.
HHD has decided not to offer any lands for sale that are not linked to utilities, to avoid the decrease in the sales value of these lands.
At the HHD’s last general assembly, it was decided to set a comprehensive plan with project timetables. This included an outline of the cash flows for each project and monthly implementation rates, in order to closely measure performance.
The company is also studying new financing means, depending on its dues from clients, to bridge the financing gap and reduce the balance of financing facilities.
In a related context, HHD is currently awaiting the Ministry of Public Enterprises Sector’s approval of its development plan, which is expected to come through in the next few days. The approval will ensure the company can start implementing its plan to develop the company.