New management in place
MNHD’s new management is currently formulating its new strategy. This new strategy includes the company’s expansion plans, but for FY22, the focus is on the land the company already has.
MNHD plans to slow down land sales to focus more on development given that dependence on land sales is not sustainable.
MNHD plans to focus on commercial operations such as leasing to generate recurring income.
MNHD is focusing on healthy management of cash flow and of debt. The company is open to increasing debt.
Given that a new strategy is being set, FY22 is nevertheless expected to witness some launches.
A big focus going forward is on delivery of units.
Land bank in key areas
MNHD’s main land bank includes two land plots in East Cairo that carry no land liabilities: Taj City, which strategically sits on 3.5 million sqm at the intersection of the Cairo-Suez Road and the Ring Road, and Sarai, which sits on 5.5 million sqm in close proximity to the New Administrative Capital.
Land remaining to be monetized in Taj City amounts to around 1.9 million sqm.
Land remaining to be monetized in Sarai amounts to around 3.5 million sqm.
MNHD’s land bank also includes a 0.4 million sqm plot in West Assiut, which MNHD is planning to launch in FY22 after completing its market research on the area. The company is studying the area closely since the project launch will answer many questions regarding the company’s expansion plans.
MNHD’s most popular installment schedule is the eight-year schedule. The company also offers a ten-year schedule.
Monetization through co-development is on the table, particularly in terms of commercial offerings.
More securitization of receivables is expected in FY22.
MNHD does not expect to be majorly impacted by real estate sector regulation.
It is not yet clear if dividends will be paid out in FY22, especially since FY21 was a tough year. In the event dividends are paid out, they are not expected to be very significant.
Capital increase to fund acquisition and development projects
Subscription to the EGP374.4 million capital increase through rights issue is expected to start in the next couple of weeks. Around half of the EGP374.4 million amount is earmarked for the acquisition of MINKA and EgyCan, and the other half is earmarked for the West Assiut project and other company developments.
The Sallam family plans to acquire a stake in MNHD by using the proceeds of the sale of MINKA and EgyCan to MNHD.