PALM HILLS – VALUATION UPDATE
​We raise our valuation for PHDC by 14% over our previous update, to stand at EGP 4.49/share vs. EGP 3.94/share updated post our assumptions concerning risk free rates expected cuts. The upgrade comes loaded by 4Q2016/1Q2017 massive prices rerating for the company`s inventory and expected new launches, as the market information we gathered indicates that the average market pricing for standalone units is currently being marketed at c. EGP 17-19K/sqm (cumulative value of BUA & Land divided by BUA area) while pricing for apartments has exceeded the EGP 12K/Sqm level long ago, with current prices heading to surpass the EGP 15K/Sqm level. Hence, the valuation upgrade for PHDC is mainly driven by an update in pricing, to an average of EGP 12.5K/Sqm for Cairo apartments in 2017 and an average of EGP 15.5-16.5K/Sqm for standalone units, in addition to the valuation addition to PHDC, derived from the new 190 acres project forecasted to launch by 4Q2017 at EGP 16.5K/Sqm.
Since its founding in 1992 as a privatization consulting office to the government of Egypt, Prime has successfully reinvented itself as a regional investment bank with a presence in major Arab markets. We provide innovative and outstanding financial services to corporations, institutions, governments, and individuals, using the breadth of our expertise to enable them to reach their objectives.
Over the years, we have refocused our business and our people while extending our geographical reach and strengthening our technological capabilities.
Today, Prime is:
- A competitive leader in the region
- Focused on both clients and products
- Led by pioneers who see change as an opportunity that constructively challenges the status quo
- Driven by a fearless and unconditional commitment to delivery and performance
- Supported by a culture that emphasizes teamwork and a sense of urgency
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