Palm Hills Developments’ board of directors have agreed to raise the company’s capital to EGP 6.235 bn from EGP 6.157 bn, an increase of EGP 78 mn, Invest-Gate reports.

The capital hike will be fully directed towards providing incentives to Palm Hills’ employees, managers, and executive board members, according to a company’s bourse filing on April 4.

In addition, the board also approved the amendment of Article 6 and Article 7 of the company’s articles of association, the filing noted. 

In 2018, Palm Hills reported EGP 906.86 mn worth of profits, including minority shareholders’ rights, compared to EGP 936.47 mn in the prior year. The developer’s activity revenues amounted to EGP 7.42 bn in 2018, compared to EGP 6.6 bn in 2017.

Meanwhile, the property developer uncovered on March 24 that its subsidiary, Arkan Palm for Real Estate Investment Company, has signed a co-development deal with the New Urban Communities Authority (NUCA) to develop a mixed-use innovative urban project in Sheikh Zayed, west Cairo, on a revenue sharing basis.

Under the deal, Palm Hills will oversee all sales and marketing activities of the compound’s residential units, while NUCA will only offer the land plot, along with all external project infrastructure. The authority is entitled to generate annual revenue from the project of EGP 10 bn over 12 years, in addition to EGP 100 mn once the contract is officially signed, with a total value of EGP 2.5 bn at a discount rate of 16%.