CAIRO, EGYPT: EFG Hermes has signed a sale and leaseback agreement amounting to EGP 750 million with real estate development firm Madinet Nasr for Housing and Development (MNHD).
EFG Hermes’ Investment Banking division acted as the financial advisor for the transaction, which will also encompass a few securitization issuances as follow-on transactions, while EFG Hermes Corp-Solutions, a wholly-owned subsidiary of EFG Hermes Holding and one of Egypt’s leading leasing and factoring companies, acted as the lender.
“We are proud to be bolstering our partnership with MNHD’s new leadership, as the company is a pioneer in the real estate market space,” said Maged El Ayouti, Managing Director & Deputy Head of Investment Banking at EFG Hermes.
“We are extremely pleased with the headway we are making in the real estate market, with this transaction being a constituent element to our strategy to form lucrative partnerships across key industries, cross-sell our products and services to our partners, and aid companies in meeting their ever-growing funding needs.”
MNHD is a premier Egyptian urban real estate developer. The company has successfully initiated and completed a number of key development projects, including the majority of the Nasr City district in the Greater Cairo Area, which covers more than 40 million sqm and houses over 3 million people.
MNHD’s land bank includes Taj City, a 3.5 million sqm project in a prime location across from Cairo International Airport and SARAI, a 5.5 million sqm project in a strategic location on the Suez Road next to the new capital city.
“This transaction is part and parcel of MNHD’s newly introduced leadership strategy to expand its operational footprint, as the Company continues to develop high-quality housing projects spanning across the country,” said Abdallah Sallam, CEO of Madinet Nasr for Housing and Development.
“Our ongoing partnership with EFG Hermes enables us to raise and deploy capital more efficiently and unlock a magnitude of expansion and development prospects for the Company.”
EFG Hermes Corp Solutions was established in 2020 as part of EFG Hermes’ Non-Bank Financial Institutions (NBFI) platform to consolidate its leasing and factoring businesses, founded in 2015 and 2018 respectively.
The company provides businesses of all sizes with the necessary leverage to grow and develop their business ventures.
This transaction with MNHD comes on the heels of the sale and leaseback agreement Corp-Solutions signed with real estate powerhouse Misr Italia Properties in October 2021, amounting to EGP 750 million with the purpose of refinancing the real estate development firm’s landmark property Garden 8 Mall.
“It gives us great honor to have concluded our first transaction with MNHD, who come with great history that started in the 1960s and continues to foster growth across the Egyptian real estate sector today,” said Talal El Ayat, CEO of EFG Hermes Corp Solutions.
“This transaction has enabled us to further strengthen our strategy in developing a one-stop-shop for our clients at EFG Hermes Holding.
Offering financing opportunities to real estate developers creates business prospects for numerous supporting sectors within the real estate supply chain, thus supporting the government’s mega plan to increase housing opportunities for Egypt’s growing population.”