9 Jun 2008 07:00
| Palm Hills Developments | June 2008 |
By establishing a Saudi Joint Stock Company
Palm Hills implements two projects in Riyadh and Jeddah
Cairo, June 8th 2008 - As part of Palm Hills Developments' strategy to expand regionally, the premier real estate developer has signed an MOU with one of the leading Saudi Arabian companies in the fields of construction and real estate for establishing two projects with EGP 3 million costs.
PHD entered into an agreement with one of the leading companies in Saudi Arabia to establish a Saudi Joint Stock company where Palm Hills will own 51%.
Commenting on the deal, Yasseen Mansour, Chairman and CEO said: "This deal is an important milestone for PHD as it marks our first step towards becoming a regional player through establishing new successful projects. We look forward to replicate PHD's successful business model according to our long experience in other markets in the region with strong growth potential like the Saudi market".
The agreement entails that the new company will acquire 6.7 million square meters (sqm) of land in Saudi Arabia, 3.7 million sqm of which will be in Riyadh located 12 km away from the city center on the north west, while the remaining 3 million sqm will be in Jeddah located 8 km north of Jeddah International Airport and approximately 3 km east of an exclusive private beach.
Mr. Yasseen Mansour praised the Saudi market assuring that this regional partnership will be an added value to PHD's portfolio of projects that reached 47 million sqm. It is well known that PHD's projects spread in different parts of Egypt at 6th October City, New Cairo city, Alexandria, North West Coast, Gamsha and Ein Soukhna at Red Sea and South of Egypt. It is also expected that this new agreement will be an edge that adds to the domestic market of KSA.
For further information please contact:
Mohamed Fahmy
Palm Hills Developments
Chief Financial Officer and Investor Relations Director
11 Nakheel Street, Mohandeseen
Tel: +202 3338 2302/3
Fax: +202 3335 1204
Email: mohamed.fahmy@palmhillsegypt.com
About Palm Hills Developments
www.palmhillsdevelopments.com
PHD is a leading real estate developer in the Egyptian market, developing primarily high-end residential real estate and resort projects. Palm Hills Developments is listed on Cairo & Alexandria Stock Exchange ("CASE") under the symbol PHDC.CA and on London Stock Exchange ("LSE") under the symbol of PHDC and has a market capitalization as of 4 June 2008 of EGP 7.9 billion (USD1.48 million). The market value of PHD's properties as at 1 March 2008 has been independently valued by CB Richard Ellis (CBRE) at LE 19.5 billion (US$3.5 billion).
The company has acquired large parcels of land in strategic locations throughout Egypt and has one of the largest land banks held by any developer operating in the Egyptian market consisting of over 38,8 million square metres of land. Of the Company's 22 projects, five are under construction and a further 12 have already been master planned. Development land locations include: Cairo's West axis in 6th of October City; Cairo's East axis in New Cairo City; the North Coast on the Mediterranean Sea; the City of Alexandria; and the Red Sea Coast in different locations.