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CI Capital: The Talaat Mostafa project in the Capital Gardens adds 20 years to the group's "land balance"



CI Capital Investment Bank expects that the Talaat Mustafa Holding Group will sign an agreement to buy a 21 million square meter land with the New Urban Communities Authority, with the "Capital Gardens" project, adding 20 years to the life of the group's land balance. Especially since the value of the land will be paid in cash and in kind, with a total value of 44 billion pounds, and the project is scheduled to be launched this year.


The investment bank raised its valuation of the shares of Talaat Mustafa Holding Group due to the new project by about 50% of the group’s shares listed on the stock exchange, which may add about 7.50 pounds per share. This is based on the standard activity of the group’s performance in the market, and after winning its mega project in the Capital Gardens.

 

It also expected that the value of sales of housing units for the project would reach about 826 billion pounds and non-residential sales at about 58 billion pounds, and investment costs are estimated at 500 billion pounds, especially since it was decided that the project would include 140 thousand housing units, in addition to commercial and other spaces for retail, medical and educational projects, and a club A 5-star sports and hotel.

 

The positive expectations were boosted by the large sales movement of Hisham Talaat Mostafa Holding Group after it recorded about 787 billion pounds in residential unit sales, which could add about 3.65 pounds to the share price, while about 8% of the project was allocated to sales and leasing of non-residential units with a total of 110 billion pounds, which adds About EGP 3.85 per share, according to the target valuation.

 

 The investment bank indicated that the new project is characterized by unprecedented payment systems and plans and is considered the longest in the real estate market, extending to a period ranging from 13 to 15 years, a year compared to the current 10-year payment plans, and the project will also witness the launch of a group of different and distinct products. Like offering many technological services.

 

In-kind payment will be made about 9.5% of the permitted building area for residential units, about 40 billion pounds, in addition to cash payment of about 4 billion pounds, and it will be in the form of 4 equal annual installments as of 2021.

 

He pointed to the risks related to the project, the most important of which is the decline in the market share in light of the concentration of the project in the East Cairo region, and the increase in competition, as the Egyptian government is offering more lands.


It is noteworthy that the "Capital Gardens" project is being designed by the 3 largest planning offices in the United States of America, where the latest technology will be applied in the project, to be a smart urban community in line with modern visions in building smart communities and cities. The project is scheduled to be launched. In the second half of this year.

 

Studies indicate that there will be a great demand on the East Cairo axis during the next 10 years, and that the areas of the Fifth Settlement, the First, the Administrative Capital, Al-Shorouk and the Capital Gardens will accommodate, by 2030, a population ranging from 10 to 11 million people.

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