Last Update 10:58
Sunday, 20 October 2019

Egyptian developer Palm Hills secures LE2.4 billion loan

Nine banks lend Palm Hills LE2.4 billion mainly to refinance other debts in addition to financing existing projects

Reuters, Tuesday 9 Sep 2014
Palm Hills
Palm Hills Katameya (Photo: Courtesy of PHD)
Share/Bookmark
Views: 949
Share/Bookmark
Views: 949

Egypt's second-largest listed real estate developer, Palm Hills Development Company, has secured a LE2.4 billion ($335.7 million) loan, to finance existing projects and refinance other debts, it said in a statement on Tuesday.

The loan agreement has been signed with nine banks and the debt will be repaid over a period of six-and-a-half years.

About LE1.75 billion will be go towards the developer's ongoing projects, while LE650 million will be used to meet debt commitments, it said. The company plans to invest LE1 billion in 2014.

Palm Hills is involved in 18 development projects, including apartments and luxury villas.

Palm Hills struggled in 2012 after it faced investigations into previous state land sales, and client cancellations following the 2011 uprising that toppled Hosni Mubarak.

In 2013, Palm Hills said it had turned a corner and recorded a profit of LE239 million ($33.6million) But the company posted an 8.3 percent decline in second-quarter net profits.

US private equity firm Ripplewood acquired a 2.3 percent stake in May, suggesting that international appetite for Egyptian real estate remained.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.