Heliopolis Company for Housing and Development (HHD) has achieved EGP 259 mn from auctioning plots in Sheraton, Heliopolis, selling about 1,980 square meters of the firm’s land bank, Invest-Gate reports.
The developer still plans to sell more 28 various-sized plots in Sheraton, totaling 290 acres – or 2-3% of the company’s land portfolio in east Cairo, notably Shorouk City, Heliopark City, and Sheraton, HHD’s Managing Director for Financial Affairs Sahar El Damati told reporters on June 23.
El Damati explained that this comes as part of HHD’s scheme to sell part its land portfolio to finance its investment plan and cut its debt, in addition to developing New Heliopolis City, east Cairo. She revealed that the company eyes raising its capital, especially after passing the company’s management to a strategic real estate investor.
Under the contract, HHD will offer 22% of its equity in a share sale on the Egyptian Stock Exchange (EGX), half of which will be sold to the investor. The plan still needs the approval of the company’s general assembly, El Damati pointed out.
“We are constructing several in-depth studies to learn means of developing the company’s land bank in order to give HHD the status it deserves, as well as, improve prices and payment plans provided to customers,” she elaborated.
Last February, HHD’s board of directors approved selling part of the company’s land portfolio to fund its investment plan, namely a 1,980-square-meter land behind Sheraton, a 190-acre plot in New Heliopolis City, northeast Cairo, in addition to a 100-acre land area in Heliopark City, according to an earlier statement.