HC Brokerage has released an update on Egypt’s real estate sector, focusing on Talaat Moustafa Group Holding (TMGH), Invest-Gate reports.

The report emphasizes how TMGH’s aggressive expansion strategy has positively impacted its share price and market turnover.

Mariam Elsaadany, a real estate analyst at HC Brokerage, noted that TMGH’s recent ventures have significantly boosted its regional presence and financial outlook. Among the key developments, TMGH announced a 10 million sqm mixed-use project in Saudi Arabia in September 2023, in partnership with the Saudi National Housing Company (NHC).

Moreover, with expected proceeds of SAR 40 bn and investments of SAR 31 bn, this project provides TMGH with substantial USD exposure and access to a market with higher spending power than Egypt.

In addition to its Saudi expansion, TMGH acquired a 51% majority stake in Legacy Hotels in July 2023, collaborating with the Abu Dhabi National Exhibitions Company (ADNEC) Group. This acquisition expands TMGH’s hotel portfolio from approximately 1,000 rooms to 3,500 rooms, with an additional 1,500 rooms under development in Egypt.

Furthermore, in July 2024, TMGH also launched SouthMed, a mixed-use project on Egypt’s North Coast in partnership with the government, ensuring substantial cash flows with minimal execution risk.

Also, HC Brokerage forecasts strong real estate cash collections for TMGH, estimating EGP 841 billion over the 2024-2030 period. This includes EGP 577 bn in real estate revenue, bolstered by new sales and existing projects, positioning TMGH for continued growth in the coming years.

Notably, once the SouthMed hotels become operational, this move is expected to increase TMGH’s market share in Egypt’s hospitality sector from 2.1% to 3.0%.