Egyptian developer Palm Hills secures LE2.4 billion loan

Reuters, Tuesday 9 Sep 2014

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

Palm Hills
Palm Hills Katameya (Photo: Courtesy of PHD)

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.

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