Egypt Real Estate | Favour diversification, prioritise stock triggers
Target quick monetisation; SODIC and MNHD top picks. Both stocks offer greatest visibility on monetisation of their core assets (5-7 years), liquid balance sheets, and abundant triggers in 2016e through anticipated project launches and deliveries. SODIC’s market cap prices its residual land at cEGP850/sqm, below its recent expansion cost of cEGP1,677/sqm, current market rates, and against expected project IRRs in excess of 30%, making the discount unjustifiable. The market prices MNHD’s residual bank at an implied cEGP615/sqm only, more than 50% below land valuations inferred by its codevelopment agreements and pricing in the recently launched T Zone, on our numbers. We also initiate coverage on Emaar Misr with an Overweight rating, though weak disclosure and sensitivity to the macroeconomic outlook prevent its inclusion in our top picks.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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