Bonyan for Development and Trade

Egypt / Real Estate / Pre-IPO Note

Fair Value: EGP7.94/share “Buy / Moderate Risk”

Sunday, 18 May 2025

Bonyan’s IPO: The First Pure Real Estate Investor

Enters the EGX Market
Bonyan (BONY) seeks to leverage a first mover’s advantage
Contents in the Egyptian real estate investment market through
acquiring prime assets, focusing on administrative and
o Company Profile Page 2
commercial buildings. Bonyan is a real estate investment
company, not a developer, that specializes in acquiring fully
o Business Model Page 3
leased trophy assets in prominent locations. Most of its
o Financial Model Page 9 rental income is related to the US dollar through
international tenants. The company’s assets value is
o Valuation & Rating Page 10 frequently escalated through revaluation process reflecting
market prices. Meanwhile, Bonyan operations benefits from
o Industry Overview Page 15 rapid urbanization, EGP devaluation, and inflationary
pressures. Our average fair value stands at EGP7.94/share.
The Story: BONY seeks an initial public offering (IPO) on the
Egyptian Exchange (EGX) through the sale of up to 33% of
company’s shares. The company will also increase its capital
and utilize the proceeds to pursue a multi-faceted
expansion strategy focused on acquiring additional assets
in line with its established acquisition criteria. This approach
will enhance its capacity to secure prime assets and position
it for sustained long-term growth. Bonyan’s revenue
streams are primarily derived from rental activities, which
have shown a robust CAGR of 154% from FY21 to FY24.
With its strong management, Bonyan is well-positioned to
navigate the challenges of Egypt’s real estate market,
including currency devaluation, while leveraging
opportunities for expansion and growth.
Our fair value stands at EGP7.94/share: We valuated BONY’s
shares using DCF, NAV, and ABV valuation techniques
indicating an average fair value of 7.94/share.

Key Performance Indicators & Multiples

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE FY End: De c . ( EG Pm n) FY 22a FY 23a FY 24a FY 25f FY 26f FY 27f
PUBLISHED BY THE COMPANY AFTER APPROVAL BY Rental Activity Revenue 291.4 422.6 625.8 844.7 1,205.7 1,492.3
THE EGYPTIAN FINANCIAL REGULATORY
Sales Activity Revenue 352.4 490.3 271.0 529.1 101.8 109.1
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN
APPROVED BY THE FRA. THE INFORMATION IN THIS Revenue 643.8 912.9 896.8 1,373.7 1,307.5 1,601.3
ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY BY EBITDA 3,009.9 4,023.8 3,803.6 4,525.8 3,801.6 6,074.2
THE INFORMATION THAT SHALL BE SET OUT IN THE
Net Profit 2,310.5 2,948.8 2,669.3 3,293.1 2,804.5 4,610.8
PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT
IS INTENDED SOLELY FOR INFORMATIONAL Revenue Growth (%) 264.7% 41.8% (1.8%) 53.2% (4.8%) 22.5%
PURPOSES AND DOES NOT CONSTITUTE, NOR EBITDA Growth (%) 489.5% 33.7% (5.5%) 19.0% (16.0%) 59.8%
SHOULD IT BE INTERPRETED AS A PUBLIC Net profit Growth (%) 581.5% 27.6% (9.5%) 23.4% (14.8%) 64.4%
OFFERING, PROSPECTUS, OR INVITATION TO
Total Income 3,254.0 4,327.1 4,070.0 4,848.7 4,110.4 6,423.1
SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
EBITDA / Total Income (%) 92.5% 93.0% 93.5% 93.3% 92.5% 94.6%
Net Profit / Total Income (%) 71.0% 68.1% 65.6% 67.9% 68.2% 71.8%
Net Debt / (Cash) 1,098.6 1,385.9 909.0 600.2 148.4 (459.1)

Analyst P/E (x) na na na 4.0x 4.7x 2.8x

P/BV (x) na na na 1.0x 0.8x 0.6x
Ayman Elshahed, FMVA
Source: Financial Statements, MubasherTrade Research (MTR) estimates.
Equity Analyst
ayman.elshahed@mubasher.net (*) Forecasted multiples are based on our fair value and forecasted EPS & BV.
(**) Total Income include revenue, Gains from fair value adjustment of investment
properties, and Gain on sale of investments.
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www.MubasherTrade.com

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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Company Profile
Business Brief: Bonyan for Development and Trade (BONY) is
Business Journey a multi-strategy real estate investment company that plays
the role of Real Estate Operating Company (REOC), using
core, core-plus, and value-add strategies to acquire fully
built, fully constructed, and preferably fully leased real
estate assets with ready cash flows for USD-linked income
2007 preferably, focusing on grade A administrative and
commercial properties.
- Establishment - Business Ownership: Bonyan is a 100% subsidiary of Sky
Bonyan established by Mena Home Realty Holding Ltd., after an acquisition deal in 2018.
Furnishings Co., a subsidiary of Qalaa
Holding (CCAP), to own Designopolis, Business Operations: The main income streams come from
as a specialized high-end furniture mall
rental income and capital appreciation, generated from an
2018 impressive asset portfolio focusing essentially on office
buildings by 74% with a presence in retail buildings by 26%.
- The Acquisition - Business Investing Benefits: Bonyan offer attractive
Sky Realty Holding Ltd.
acquired 100% of Bonyan.
investment opportunities for investors through:
(1) Fractional Ownership offers a flexible investment size
solution for real estate, addressing ticket size issues due
2021
to higher inflation and lower purchasing power.
(2) Liquidity by allowing investors to buy and sell shares at
- Rebranding and Relaunching - any time instead of purchasing a physical off-plan unit.
Rebranding and relaunching Designopolis
mall into Walk of Cairo mall, as a regular (3) Capital Appreciation in real estate assets offers
sort of mall with restaurants, cafes, stores,
and children's areas investors the opportunity to benefit from both the
location and quality of the assets, while also serving as a
2022 hedge against inflation.
(4) No Construction Risk through focusing on acquiring fully
- Starting Core Plus strategy - constructed and rented assets without any
Acquiring six separate office buildings,
starting to form the bedrock of Bonyan
development activities and inflation reflections.
strategy, which is the Core Plus strategy (5) No Residential Properties Bubble Risk through focusing
on acquiring administrative and commercial buildings
2024
without residential units and low occupancy rates risks.
(6) Assets Professionally Managed through a dedicated
- More Expansion in Assets - team with experience in real estate investment
Acquiring the eighth, ninth, and tenth
real estate properties (7) Diversified Portfolio distributed between East Cairo and
West Cairo, with focus on prime locations.

2025
Executive Management Team: management structure owns
investing experience backed by huge real estate data:
o Mr. Shamel Aboul Fadl, Executive Chairman.
- IPO on EGX -
Starting the Initial Public Offer (IPO) o Mr.Tarek Abdel Rahman, Chief Executive Officer (CEO).
process on Egyptian Exchange (EGX) o Mr. Fady Raafat, Chief Financial Officer (CFO).
o Mr.Ahmad Hassanein, Chief Operating Officer (COO).

Business Factsheet
10 119 57% 57%
Assets Tenants Multinationals Tenants USD-linked Income

146,000 sqm 100,700 sqm No

No
Built Up Area Gross leasable area Residential Properties
Construction Risk
(BUA) (GLA) Bubble Risk
THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
For more information on MubasherTrade, please visit our website at www.MubasherTrade.com or contact us at
www.MubasherTrade.com

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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Business Model
GLA Structure by Geographic Scope Business Model: Bonyan uses an own-to-lease model that
centers around the ability to acquire assets, increase the
occupancy rates, get USD-linked cash flows preferably, and
then acquire more assets, and so on.
Assets Acquiring Strategy: Bonyan followed up with a
multi-strategy in real estate investment as follows:
1. Core-Plus Strategy: acquiring high-quality, fully leased
properties in prime locations, with high capital
appreciation, leading to generating stable cash flows
Source: Company Disclosure
through strong contractual arrangements (Low Risk)
2. Core Strategy: acquiring properties are partially leased,
with high capital appreciation, leading to lower visibility
GLA Structure by Type on initial cash flows. (Moderate Risk)
3. Value-Added Strategy: acquiring properties that require
asset repositioning, active management, and,
implementing operational strategies to unlock and grow
the assets’ long-term value. (Moderate Risk)
Bonyan keeps more focus on core and core-plus strategies
when acquiring assets.
Assets Acquisition Criteria: leveraging an up-to-date and
in-house database to (1) identify Grade A assets and (2)
Source: Company Disclosure analyze the technical and commercial building qualities.
Assets Acquiring Process: the investment process includes
(1) initial screening process, (2) filtered screening and due
Occupancy Rates diligence, (3) execution and closing of the deal, (4) post-
acquisition strategy creates more value.
Assets Acquiring Focus: Bonyan shifted the focus from
retail to office due to (1) more stability, (2) lower turnover of
office tenants, and (3) a larger supply gap in office buildings
leading to more favorable market dynamics.
Assets Acquiring Financing: using a leveraged buyout (LBO)
Source: Company Disclosure for loans to acquire assets with nearly 10% loan-to-value.

Key Operational Lines

Asset Management Property Management Facility Management

In-House, 100%

➢ Assets Portfolio Management. ➢ Rents Collections. ➢ Utilities Engineering.

➢ Asset Acquisition & Disposal. ➢ Tenant Management. ➢ Cleaning & Housekeeping.
➢ Capital Structure Optimization. ➢ Marketing & Leasing. ➢ Maintenance & Pest Control.
➢ Strategic Planning & Analysis. ➢ Compliance & Risk Management ➢ Health, Safety & Security.

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
For more information on MubasherTrade, please visit our website at www.MubasherTrade.com or contact us at
www.MubasherTrade.com

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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Business Model (Cont’d)

Assets Portfolio

Building No. 15 Building No. 44 Building No. 75

• Location: East Cairo • Location: East Cairo • Location: East Cairo

• BUA: 11,652 sqm • BUA: 29,424 sqm • BUA: 14,512 sqm
• GLA: 8,624 sqm • GLA: 18,559 sqm • GLA: 7,759 sqm

Building No.250 Building No. 106 A Building No. 106 B

• Location: East Cairo • Location: East Cairo • Location: East Cairo

• BUA: 5,830 sqm • BUA: 10,504 sqm • BUA: 4,297 sqm
• GLA: 3,540 sqm • GLA: 10,504 sqm • GLA: 4,297 sqm

Source: Company disclosure.

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
For more information on MubasherTrade, please visit our website at www.MubasherTrade.com or contact us at
www.MubasherTrade.com

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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Business Model (Cont’d)

Assets Portfolio

Walk of Cairo Park St. West Park St. Edition Building No. A5
Mall

• Location: West Cairo • Location: West Cairo • Location: East Cairo • Location: East Cairo
• BUA: 53,370 sqm • BUA: 1,370 sqm • BUA: 7,710 sqm • BUA: 6,888 sqm
• GLA: 38,285 sqm • GLA: 1,370 sqm • GLA: 8,178 sqm • GLA: 6,888 sqm

Assets Map

Building No.106 A

Building No.106 B
Building No.15

Building No.44

Building No.75

Walk of Cairo Mall (WOC)

Park St. West

Park St. Edition

Building No. 250

Building No. A5

Source: Company disclosure.

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
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www.MubasherTrade.com

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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Business Model (Cont’d)

Strengths:
Revenue Portfolio Structure
o First Mover Advantage enables Bonyan to acquire prime
assets, supported by a vast database and deep
understanding of the real estate market, allowing it to
secure high-quality properties before competitors.
o FX-denominated Topline given that 56% of rental
contracts are linked to the USD.
o Capital Appreciation based on asset location and quality
in addition to inflation hedge.
Source: Company Disclosure o Capital Revaluation driven by quarterly asset revaluation
based on comparable transactions, replacement costs,
Tenants Revenue Structure and cash flow, conducted by a third-party FRA-approved
valuator and reviewed and approved by auditor.
o Asset appreciation; driven by location, asset quality, and
Bonyan's effective lease model, which serves as an
excellent inflation hedge.
o Flexible Pricing with escalation rates embedded within
rental contracts and the company's ability to re-rate
contracts upon their expiry to market rates.
o Predictable Cash Flows and Stable Rental Income are
Source: Company Disclosure ensured through focus on acquiring built and leased
assets, with c. 60% of rental income generated from
Rent Revenues Concentration multinational tenants and long-term contracts ranging
from 5 to 9 years, with an average of 7 years.
o Minimal Concentration Risk with the largest tenant only
contributing to 6.4% of Bonyan's rental revenues.
o Investment Efficiency in Real Estate compared to
traditional real estate investing, providing liquidity and
fractional ownership through shares.
o Bulk Purchasing Strategy by acquiring assets in bulk at
attractive prices and acquisition terms.
o Assets Recycling Agility by selling mature assets and
reinvesting the proceeds in new prime assets.
Weaknesses:
o Slower Than Expected Decline in Interest Rates will limit
the company's ability to take on leverage and may slow
down its expansion plans.
Source: Company Disclosure Opportunities:
o Expansion in Real Estate Assets driven by the acquisition
Tenants Average Contract Length of new Grade A properties, aiming to deploy EGP4.5bn to
EGP5.0bn using IPO proceeds, internal cash flows, and
leverage, if interest rates declining as expected.
Threats:
o Volatility in Retail Building Market after COVID-19 and all
restrictions reflected on the retail market, leading BONY
Source: Company Disclosure to focus more on office buildings.
THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Business Model (Cont’d)

Revenue Streams: Bonyan adopts a buy-and-hold strategy,
Rental Activity Revenue
targeting prime real estate assets with strong potential for
long-term capital appreciation. The company also
generates recurring income through leasing activities. Once
an asset or segment reaches maturity, management
typically undertakes a phased exit strategy, often divesting
through the sale of smaller units to maximize value.
Revenue Breakdown by Operational Activities: BONY
focuses on rental income, showing a strategic shift toward
solid and recurring revenue sources by retaining assets
whose prices have appreciated and renting them out.
o Rental Activity Revenue grew from EGP38.0mn in FY21
Sales Activity Revenue to EGP626mn in FY24, achieving a CAGR of 154%. This
growth was driven by strong performance in East Cairo,
as rental activity revenue increased significantly due to
higher occupancy rates and rent escalations. The relative
weight of rental activity in total revenue also increased
from 21.5% in FY21 to 70% in FY24, highlighting the
growing revenue mix as a result acquiring the six office
buildings in 2022 that were nearly fully rented out with
c. 92% occupancy at the purchase time.
o Sales Activity Revenue increased from EGP138.5mn in
FY21 to EGP271mn in FY24, with a CAGR of 25.1%. This
reflects the strategic shift towards rental income. The
East Cairo Assets Revenue relative weight of sales activity in total revenue
decreased from 78.5% in FY21 to 30.2% in FY24,
indicating the diminishing contribution to BONY’s overall
performance, noting that BONY is only selling certain
units in Walk of Cairo (WoC) and only has 10 units
remaining. (i.e., it has almost finished its sales inventory).
o Revenue Breakdown by Geographic Scope: BONY’s
operations are concentrated in East Cairo and West
Cairo, with East Cairo emerging as the primary revenue
driver due to premium developments and high demand.
o East Cairo Assets Revenue grew from EGP234.4mn in
FY22 to EGP518mn in FY24, achieving a growth of 121%.
West Cairo Assets Revenue This growth was driven by strong rental activity and new
acquisitions in this geographic scope. The relative weight
of East Cairo assets in total revenue increased from 36%
in FY22 to 58% in FY24, underscoring the dominance the
portfolio, due to acquiring six office buildings in 2022.
o West Cairo Assets Revenue grew from EGP176.5mn in
FY21 to EGP378mn in FY24, with a CAGR of 28.9%. This
slower growth reflects lower rental demand in this
geographic scope. The relative weight of West Cairo
assets in total revenue decreased from 100% in FY21 to
42% in FY24. The reason the weight of West Cairo
Source: Financial Statements, Company Disclosure declined is the acquisition of the six office buildings in
(*) This includes unit sales. East Cairo.
THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
For more information on MubasherTrade, please visit our website at www.MubasherTrade.com or contact us at
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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Business Model (Cont’d)

Revenue Breakdown Revenue Summary by Operational Activities
by Operational Activities in FY24
EGP mn FY21a FY22a FY23a FY24a
Rental activity 38.0 291.4 422.6 625.8
Sales activity 138.5 352.4 490.3 271.0
Total Revenue 176.5 643.8 912.9 896.8

Revenue Relative weight by Operational Activities

(%) FY21a FY22a FY23a FY24a
Rental activity 21.5% 45.3% 46.3% 69.8%
Sales activity 78.5% 54.7% 53.7% 30.2%
Total Revenue 100.0% 100.0% 100.0% 100.0%

Revenue Breakdown Revenue Breakdown by Geographic Scope

by Geographic Scope in FY24
EGP mn FY21a FY22a FY23a FY24a
East cairo assets - 234.4 368.2 518.3
West cairo assets 176.5 409.4 544.7 378.5
Total Revenue 176.5 643.8 912.9 896.8

Revenue Relative weight by Geographic Scope

(%) FY21a FY22a FY23a FY24a
East cairo assets - 36.4% 40.3% 57.8%
West cairo assets 100.0% 63.6% 59.7% 42.2%
Total Revenue 100.0% 100.0% 100.0% 100.0%
Source: Financial Statements, Company Disclosure

Market Assets Value by Geographic Scope

Market Assets Value
by Geographic Scope in FY24 EGP mn FY24a
East cairo assets 10,902.0
West cairo assets 5,060.0
Total market value of assets 15,962.0

Market Assets Value Relative weight by Geographic Scope

(%) FY24a
East cairo assets 68.3%
West cairo assets 31.7%
Total market value of assets 100.0%

Source: Global Appraisal Tech (GAT)’s report

Source: Global Appraisal Tech (GAT)’s report Source: Financial Statements, Company Disclosure

Revenue Breakdown by Operational Activities Revenue Breakdown by Geographic Scope

Source: Company Disclosures. Source: Company Disclosures.

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
For more information on MubasherTrade, please visit our website at www.MubasherTrade.com or contact us at
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Bonyan for Development and Trade
Egypt / Real Estate / Pre-IPO Note
Sunday, 18 May 2025

Financial Model
Income Statement Per-Share Data

EGP mn FY22a FY23a FY24a FY25f FY26f FY27f FY End: December FY22a FY23a FY24a FY25f FY26f FY27f

Revenue 644 913 897 1,374 1,307 1,601 Price (EGP) na na na 7.94 7.94 7.94

Cost of revenue (157) (207) (175) (185) (174) (201) # Shares (mn)* 1,191 1,238 1,350 1,654 1,654 1,654

Gross profits / (losses) 487 706 722 1,188 1,133 1,401 EPS (EGP) 1.9 2.4 2.0 2.0 1.7 2.8

Gain in FMV 2,610 3,390 3,173 3,475 2,803 4,822 BVPS (EGP) 3.3 5.6 7.4 8.0 9.7 12.5

SG&A expense (82) (101) (102) (138) (135) (148)

Impairements expense (5) 5 3 - - - Valuation Indicators

Gain on sale of investments - 24 - - - - FY End: December FY22a FY23a FY24a FY25f FY26f FY27f

EBITDA 3,010 4,024 3,804 4,526 3,802 6,074 PER (x) na na na 4.0x 4.7x 2.8x

Depreciation expense (4) (4) (5) (5) (5) (6) PBV (x) na na na 1.0x 0.8x 0.6x

EBIT 3,006 4,020 3,799 4,521 3,796 6,068 EV/Revenue (x) na na na 13.0x 10.0x 10.2x

Interest Income 12 30 32 14 14 14 EV/EBITDA (x) na na na 3.1x 3.0x 3.5x

Interest Expense (112) (270) (401) (289) (195) (137)

Earnings before tax (EBT) 2,907 3,780 3,430 4,245 3,615 5,945 Profitability & Growth Ratios

Income tax expense (596) (831) (761) (952) (810) (1,335) FY End: December FY22a FY23a FY24a FY25f FY26f FY27f

Net profit 2,310 2,949 2,669 3,293 2,804 4,611 Revenue Growth (%) 264.7% 41.8% -1.8% 53.2% -4.8% 22.5%

EBITDA Growth (%) 489.5% 33.7% -5.5% 19.0% -16.0% 59.8%

Balance Sheet Statement Net Income Growth (%) 581.5% 27.6% -9.5% 23.4% -14.8% 64.4%

EGP mn FY22a FY23a FY24a FY25f FY26f FY27f EBITDA / Total Income (%) 92.5% 93.0% 93.5% 93.3% 92.5% 94.6%

Cash and cash equivalents 126 134 151 292 559 957 Net Profit / Total Income (%) 71.0% 68.1% 65.6% 67.9% 68.2% 71.8%

Inventory (Available units for sale) 179 76 41 0 0 0

Other current assets 232 346 429 301 267 226 Liquidity & Solvency Multiples

Total current assets 537 556 620 593 826 1,183 FY End: December FY22a FY23a FY24a FY25f FY26f FY27f

Fixed assets 23 45 50 50 50 51 Net debt (cash) 1,099 1,386 909 600 148 (459)

Net investments in real estate 5,957 9,423 12,732 16,785 19,760 25,742 Net debt (cash) / Equity (%) 27.6% 20.0% 9.1% 4.5% 0.9% -2.2%

Other non-current assets 179 363 479 612 606 57 Net debt (cash) / Assets (%) 16.4% 13.3% 6.5% 3.3% 0.7% -1.7%

Total assets 6,696 10,387 13,882 18,040 21,243 27,033 Net debt (cash) / EBITDA (x) 0.4x 0.3x 0.2x 0.1x 0.0x -0.1x

Debt (current) 126 169 154 185 209 210 Current ratio (x) 0.8x 1.3x 1.3x 0.9x 1.2x 1.4x

Other current liabilities 571 247 307 473 492 661

Total current liabilities 697 416 461 658 701 871 Cash Flow Statement

Debt (non-current) 1,111 1,361 913 707 498 288 EGP mn FY22a FY23a FY24a FY25f FY26f FY27f

Other non-current liabilities 902 1,675 2,488 3,362 3,926 5,146 Cash from operating activities 284 542 657 639 890 1,157

Total non-current liabilities 2,013 3,036 3,401 4,069 4,424 5,434 Cash from investing activities (1,116) (605) (145) (559) (358) (762)

Total liabilities 2,710 3,452 3,862 4,727 5,125 6,304 Cash from financing activities 941 24 (449) 61 (265) 3

Total owner's equity 3,986 6,935 10,020 13,313 16,118 20,728 Change in Cash 109 (39) 64 141 267 399

Total liabilities and owner's equity 6,696 10,387 13,882 18,040 21,243 27,033 Beginning Cash Balance 18 126 87 151 292 559

Ending Cash Balance 126 87 151 292 559 957

Source: Company data, MubasherTrade Research (MTR) estimates.

(*) Forecasted multiples are based on our fair equity value and expected earnings and book value.

(**) Historical number of outstanding shares is adjusted by stock split and capital increase.

(***) Total Income include revenue, Gains from fair value adjustment of investment properties, and Gain on sale of investment s.

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
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Valuation and Recommendation

Valuation Summary: We valued BONY using Adjusted Book Value (ABV), reaching an equity
three valuation methods: (1) discounted cash value average of EGP13bn, implying a fair value
flow (DCF), (2) Net Assets Value (NAV) and (3) of EGP7.94/share.
DCF NAV ABV
Item
Valuation Method Valuation Method Valuation Method
Equity Value (EGP mn) 15,519.8 12,021.6 11,873.3
Equity Value Average (EGP mn) 13,138.2
Outstanding shares (# mn) 1,654.0
Fair value (EGP) 7.94

[1] Discounted Cash Flow (DCF)

We used discounted cash flow (DCF) method, period and adding back the other non-cash
implies an equity value of EGP15.5bn, based on items (including change in deferred tax of
our main assumptions as follows: EGP763.4mn on average).
o Net Operating Profit After Tax (NOPAT) to o Terminal Value (TV) is estimated using
average EGP3.7bn during forecast horizon on different 2 approaches: (1) terminal rent yield
escalating rental income and capital of 7.3% based on Savills estimates and total
appreciation driven primarily by inflation. forecasted rent revenue of EGP2.4bn by the
o CapEx & New acquisitions are projected to end of 2029 escalated by 10%, based on
grow at a 18.9% CAGR in 2025-29, utilizing median contracts escalation rates, to account
nearly all excess cash for asset purchases, for contracts re-rating effect beyond 2029,
before stabilizing at a maintenance CapEx and (2) conventional Gordon growth method
level in the terminal phase. (GGM) using terminal FCFF, WACC, and
o Free Cash Flow to the Firm (FCFF) is expected terminal growth rate as depicted in below
to grow at CAGR of 28.6% in 2025-29, after table. We assigned 50%-50% weights to both
taking into consideration total CapEx, changes approaches, respectively, reaching a TV of
in working capital, and deducting the huge EGP28.3bn at the end of the forecasted
gains from revaluation of real estate assets of period.
EGP3.4bn on average during forecasted
Item FY25f FY26f FY27f FY28f FY29f
Weighted Average Cost of Capital (WACC) 23.0% 21.8% 20.1% 16.7% 15.3%
Terminal Growth Rate (TGR)* 7.0%
Item FY25f FY26f FY27f FY28f FY29f
EBIT after tax 3,506.9 2,945.3 4,706.2 3,536.4 3,800.6
(-) Gain in R.E. Assets FMV (3,475.0) (2,803.0) (4,821.8) (2,947.0) (2,933.1)
(+) COGS for Sold Units 40.5 - - - -
(+) Depreciation 5.0 5.4 5.9 6.4 6.9
(+) Change in deferred tax 778.6 630.7 1,084.9 663.1 659.9
Chaning in working capital (112.8) 242.6 206.7 183.6 93.7
CapEX & New Acquisitions (547.7) (357.9) (761.6) (822.3) (1,093.6)
Free cash flow to the firm (FCFF) 195.6 663.1 420.4 620.1 534.5
Terminal value (TV) 28,305.6
Present value of FCFF 170.1 474.3 255.8 349.8 14,829.1
Enterprise value 16,079.0
Add:
Cash and cash equivalents in FY24a 662.2
Less:
Total debt & Other Payables in FY24a (1,221.4)
Equity value (EGP mn) 15,519.8
Source: Financial Statements, MubasherTrade Research (MTR) estimates.
(*) We use a TGR of 7% conservatively, despite the fact that the annual escalation rate in rental contracts is 10% in a stable environment and
can reach 12-15% during high inflation environment.
THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
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BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
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Valuation and Recommendation (Cont’d)

[2] Net Assets Value (NAV) [3] Adjusted Book Value (ABV)
We valued BONY using Net Assets Value (NAV) We also valued BONY using our Adjusted Book
technique, implying an equity value of Value (ABV) method, implying an equity value of
EGP12.0bn, based on our main assumptions as EGP11.9bn, based on our main assumptions as
follows: follows:
o Gross Asset Value (GAV) represents the o Book Value (BV) represents the net value of a
estimated fair value of buildings using the BONY's assets after subtracting liabilities by
market valuation approach by 2024, 2024, reporting a fair value of EGP10.0bn.
according to the technical appraisal of Global
o Upcoming acquisitions include Golden Gate
Appraisal Tech (GAT), standing at EGP16.0bn,
Mall (Redcon) and Park Street Edition, which
adjusted for cash, debt, and deferred tax.
is not included right now and should
o PV of remaining acquisition installments contribute significantly to BV in the
reflects the current worth of future upcoming financial statements once those
payments tied to acquisitions, discounted to assets are received.
today’s terms. This component is recorded as
a liability, amounting to EGP954mn by 2024.

NAV Bridge Chart ABV Bridge Chart

NAV Valuation Method Calculation ABV Valuation Method Calculation

Item Item
Gross assets value (GAV) 15,962.0 Book value (BV) 10,020.1
Add: Add:
Cash & sales receivables 662.2 Golden Gate Mall (Redcon) - Gain in FMV 999.0
Less: Park Street Edition - Gain in FMV 903.0
Total debt & other payables in FY24a (1,221.4) Inventory - Gain in FMV 379.0
PV of remaining acquisition installments (954.0) Less:
Deferred tax (2,427.2) Deferred tax on Golden Gate & Park Street assets (427.8)
Equity value (EGP mn) 12,021.6 Equity value (EGP mn) 11,873.27
Source: Financial Statements, MubasherTrade Research (MTR) estimates.

THE PUBLIC SUBSCRIPTION NOTICE (PSN) SHALL BE PUBLISHED BY THE COMPANY AFTER APPROVAL BY THE EGYPTIAN FINANCIAL REGULATORY
AUTHORITY (FRA). THE PSN HAS NOT YET BEEN APPROVED BY THE FRA. THE INFORMATION IN THIS ANNOUNCEMENT IS QUALIFIED IN ITS ENTIRETY
BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE, NOR SHOULD IT BE INTERPRETED AS A PUBLIC OFFERING, PROSPECTUS, OR INVITATION
TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.
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Valuation and Recommendation (Cont’d)

Forecast Assumptions
[1] Macroeconomics Assumptions: 4.7% above inflation rates (based on Savills
o Egypt inflation rate: According to the which expected to push rental rates upward.
International Monetary Fund (IMF), inflation [2.1] East Cairo Scope - New Cairo rental rates
rates are predicted to gradually decline, is expected to increase from EGP1,530.3/sqm
followed by lower interest rates. We assume, in 2025 to EGP2,522.2/sqm in 2029 based on
the decline starts from 13.0% in FY25 to 5.3% inflation rates with, higher than Nasr City and
in FY29 in the base-case scenario. Zayed, indicating a premium positioning in
o CBE corridor interest rate: Central Bank of real estate market, backed by its high-end
Egypt (CBE) seeks to shift to easing policy in developments, making it a preferred location
endeavors to stimulate economic growth. We for affluent residents and businesses.
forecast the corridor interest rate to [2.2] East Cairo Scope - Nasr City rental rates
slowdown from 23.5% in 2025 and to 10.3% is expected to increase from EGP535.6/sqm in
in 2029. 2025 to EGP882.8/sqm in 2029, reflecting
o USD/EGP exchange rate: The EGP is expected steady growth driven by demand and
to weaken against the USD, from EGP52.72 by inflation.
FY25 end to EGP69.30 by FY29 end, based on [2.3] West Cairo Scope - Zayed Rates: There’s
Savills implied estimates. a difference between; (1) Indoor rent that
[2] Real Estate Market Assumptions: expected to increase from EGP1,000.0/sqm in
2024 to EGP1,648.2/sqm in 2029, (2) Outdoor
The growth in rental rates is driven by
rent that expected to increase from
urbanization and population growth in Cairo,
EGP500.0/sqm in 2025 to EGP824.1/sqm in
increasing demand for administrative and
2029, reflecting inflationary pressures and
commercial spaces. Additionally, rising
Zayed's strategic location in West Cairo.
construction costs is expected to add a spread of

Source: MubasherTrade Research (MTR) estimates

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BY THE INFORMATION THAT SHALL BE SET OUT IN THE PSN AND IS SUBJECT TO CHANGE. THIS DOCUMENT IS INTENDED SOLELY FOR
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Sunday, 18 May 2025

Valuation and Recommendation (Cont’d)

Scenario Analysis
Best Case Scenario Equity Value FY25f FY26f FY27f FY28f FY29f
[1] Macroeconomics Assumptions:
Egypt inflation rate (%) 13.5% 12.5% 10.9% 7.3% 5.8%
Construction inflation spread (%) 5.2% 5.2% 5.2% 5.2% 5.2%
Egypt effective inflation rate (%) 18.7% 17.7% 16.1% 12.5% 11.0%
CBE corridor interest rate (%) 22.3% 16.3% 10.3% 10.3% 10.3%
Exchange rate (USD/EGP) 54.54 59.56 64.11 66.75 68.52
[2] Real Estate Market Assumptions: EGP 19.0bn
[2.1] East Cairo Scope - New Cairo Rates:
Rent rate per sqm (EGP) 1,899.4 2,235.9 2,596.1 2,921.0 3,242.7
Rent rate per sqm (USD) 34.8 37.5 40.5 43.8 47.3
Service charge per sqm (EGP) 237.4 279.5 324.5 365.1 405.3
Service charge per sqm (USD) 4.4 4.7 5.1 5.5 5.9
[2.2] East Cairo Scope - Nasr City Rates:
Rent rate per sqm (EGP) 949.7 1,117.9 1,298.1 1,460.5 1,621.3
Rent rate per sqm (USD) 17.4 18.8 20.2 21.9 23.7
Service charge per sqm (EGP) 118.7 139.7 162.3 182.6 202.7
Service charge per sqm (USD) 2.2 2.3 2.5 2.7 3.0
[2.3] West Cairo Scope - Zayed Rates:
Indoor rent rate per sqm (EGP) 1,050.0 1,236.0 1,435.1 1,614.7 1,792.6
Indoor rent rate per sqm (USD) 19.3 20.8 22.4 24.2 26.2
Outdoor rent rate per sqm (EGP) 735.0 865.2 1,004.6 1,130.3 1,254.8
Base Case Scenario Equity Value FY25f FY26f FY27f FY28f FY29f
[1] Macroeconomics Assumptions:
Egypt inflation rate (%) 13.0% 12.0% 10.4% 6.8% 5.3%
Construction inflation spread (%) 4.7% 4.7% 4.7% 4.7% 4.7%
Egypt effective inflation rate (%) 17.7% 16.7% 15.1% 11.5% 10.0%
CBE corridor interest rate (%) 23.5% 17.5% 11.8% 10.3% 10.3%
Exchange rate (USD/EGP) 52.58 57.65 62.38 65.75 67.85
[2] Real Estate Market Assumptions: EGP 15.5bn
[2.1] East Cairo Scope - New Cairo Rates:
Rent rate per sqm (EGP) 1,530.3 1,786.0 2,056.0 2,292.7 2,522.2
Rent rate per sqm (USD) 29.1 31.0 33.0 34.9 37.2
Service charge per sqm (EGP) 176.6 206.1 237.2 264.5 291.0
Service charge per sqm (USD) 3.4 3.6 3.8 4.0 4.3
[2.2] East Cairo Scope - Nasr City Rates:
Rent rate per sqm (EGP) 535.6 625.1 719.6 802.4 882.8
Rent rate per sqm (USD) 10.2 10.8 11.5 12.2 13.0
Service charge per sqm (EGP) 61.8 72.1 83.0 92.6 101.9
Service charge per sqm (USD) 1.2 1.3 1.3 1.4 1.5
[2.3] West Cairo Scope - Zayed Rates:
Indoor rent rate per sqm (EGP) 1,000.0 1,167.1 1,343.5 1,498.2 1,648.2
Indoor rent rate per sqm (USD) 19.0 20.2 21.5 22.8 24.3
Outdoor rent rate per sqm (EGP) 500.0 583.6 671.8 749.1 824.1
Worst Case Scenario Equity Value FY25f FY26f FY27f FY28f FY29f
[1] Macroeconomics Assumptions:
Egypt inflation rate (%) 12.5% 11.5% 9.9% 6.3% 4.8%
Egypt effective inflation rate (%) 16.7% 15.7% 14.1% 10.5% 9.0%
CBE corridor interest rate (%) 25.3% 19.3% 13.3% 10.3% 10.3%
Exchange rate (USD/EGP) 50.64 55.76 60.67 64.76 67.19
[2] Real Estate Market Assumptions: EGP 14.5bn
[2.1] East Cairo Scope - New Cairo Rates:
Rent rate per sqm (EGP) 1,458.9 1,688.2 1,926.4 2,128.9 2,320.8
Rent rate per sqm (USD) 28.8 30.3 31.8 32.9 34.5
Service charge per sqm (EGP) 151.7 175.6 200.3 221.4 241.4
Service charge per sqm (USD) 3.0 3.1 3.3 3.4 3.6
[2.2] East Cairo Scope - Nasr City Rates:
Rent rate per sqm (EGP) 437.7 506.4 577.9 638.7 696.2
Rent rate per sqm (USD) 8.6 9.1 9.5 9.9 10.4
Service charge per sqm (EGP) 45.5 52.7 60.1 66.4 72.4
Service charge per sqm (USD) 0.9 0.9 1.0 1.0 1.1
[2.3] West Cairo Scope - Zayed Rates:
Indoor rent rate per sqm (EGP) 950.0 1,099.3 1,254.4 1,386.3 1,511.2
Indoor rent rate per sqm (USD) 18.8 19.7 20.7 21.4 22.5
Outdoor rent rate per sqm (EGP) 285.0 329.8 376.3 415.9 453.4
Source: MubasherTrade Research (MTR) estimates.
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Valuation and Recommendation (Cont’d)

Net Operating Profit After Tax Sensitivity Analysis: Our sensitivity analysis offers valuable
insights into how different variables affect financials.
o Terminal rent yield vs. terminal Inflation Rates: Changes
in these two factors have a significant impact on both
the terminal and equity values. As seen in the tables
below, changes in these two factors resulted in equity
values that ranged from EGP13.6bn to EGP18.2bn.
o Terminal WACC vs. TGR: changes terminal weighted
average cost of capital (WACC) and terminal growth rate
(TGR) resulted in equity values that ranged from
EGP12.7bn to EGP22.4bn.
Source: MubasherTrade Research (MTR) estimates

Sensitivity Analysis Tables:

Total Capital Expenditures
Terminal Inflation Rate (%)*

15,519.8 8.0% 9.0% 10.0% 11.0% 12.0%

6.7% 15,220 15,732 16,368 17,180 18,251

Terminal Rent Yield (%)

7.0% 14,778 15,290 15,926 16,737 17,809

7.3% 14,372 14,884 15,520 16,331 17,403

7.6% 13,998 14,510 15,146 15,958 17,029

Source: MubasherTrade Research (MTR) estimates 7.9% 13,653 14,165 14,801 15,612 16,683

DCF Valuation Waterfall

Weighted Average Cost of Capital - WACC (%)

15,519.8 17.3% 16.3% 15.3% 14.3% 13.3%

Terminal Growth Rate (%)

9.0% 14,551 15,814 17,394 19,463 22,352

8.0% 13,947 15,025 16,328 17,956 20,086

7.0% 13,461 14,406 15,520 16,864 18,543

6.0% 13,061 13,909 14,887 16,038 17,426

Source: MubasherTrade Research (MTR) estimates. 5.0% 12,728 13,500 14,378 15,390 16,580

* Egypt terminal inflation rate of 5.3% plus Construction Spread of 4.7%.

Source: Financial Statements, MubasherTrade Research (MTR) estimates.

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Industry Overview

Listed Real Estate Investment Comp. Real Estate Contribution in Egypt: In Egyptian Exchange
% of Real Estate Market Cap (%) (EGX), real estate is not yet an existing financial asset class.
In contrast to the popularity of real estate investment
companies on regional exchanges, EGX solely includes real
estate development companies, as there’s an absence of
pure-play real estate investment companies on EGX. In the
meantime, Egypt's real estate industry continues to
contribute significantly to both the country's GDP and EGX
market capitalization.
Real Estate Market in Cairo: In 2024, the Egyptian real
estate market is changing dramatically due to a
combination of government regulations, infrastructure
spending, affordability, sustainability, and technology
advancements. Even with price increases in 2023, the office
market is experiencing a dynamic shift. On the supply side,
there has been a significant increase in office space,
particularly in East Cairo, where new developments are
adding to the total stock. Demand is being fueled by the
influx of international corporations; the demand for
efficient office spaces remains strong, leading to a gap in
the office market.
Factors Affecting the Real Estate Market: The real estate
market has been affected by a number of economic factors,
such as a lack of foreign exchange, which led to increased
import costs, increased building costs, increased energy
Real Estate Contribution prices, and inflation, leading to an increase in returns on
to EGX Market Cap (%) real estate projects.
Market Dynamics Impacting the Real Estate Assets: The
Real Estate Assets are affected by new construction laws
introduced in August 2021, which impose restrictions on
building heights, usage, and area, particularly in older cities
like Cairo. These laws have led to a halt in new construction
permits in older cities, pushing demand towards new urban
developments. The new regulations have also increased
permitting fees and parking requirements, further
complicating development in older areas. While these
changes may increase home prices due to restricted supply,
they have also negatively impacted land values in older
Egypt GDP Breakdown
cities, potentially improving affordability in the long term.
Office and Retail Market Updates:
o Office Market: There’s a persistent deficit between
supply and demand in the office building market, despite
supply growing at a higher CAGR than demand, signaling
a strong expansion outlook.
o Retail Market: Stable rental rates, increased demand for
Source: Savills Egypt affordable brands, and economic pressures challenges.
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Industry Overview (Cont’d)

Office Market Demand Drivers:
Competitive Landscape o Transition to Satellite Cities: Most multinationals have
shifted to new satellite cities, but many SMEs still use
Peer Peer
informal space, a trend that will likely reverse, mainly to
Companies Projects
East Cairo due to the proximity to the airport and access
• Consoleya to a larger pool of educated middle class employees.
• La Viennoise o Investor Preference for Smaller Spaces: Developers sell
• Rawabet
• Cinema Radio
strata office units as they tend to sell smaller-sized off-
plan units, resulting in multinationals and large Egyptian
corporates being unable to rent these units as they
• Downtown require larger spaces.
• West
o Build-to-Sell Model Dominance: Traditional developers
prefer a build-to-sell model to generate immediate cash
flows and offer smaller office spaces for ease of selling.
• KONEKT
• Kinetic Key Readiness for Office Market:
• Nexus
o Lease Rate Adjustments Post-Devaluation: Following
multiple devaluations, lease rates are expected to rerate
• District 5 back to their base levels in USD terms.
• Villa M
• Mall Of Arabia o Surge in Asset Prices: Significant increase in asset prices
since 2021, given strong demand, FX volatility, and high
inflation.
Expected Offices Supply
Key Readiness for Retail Market:
by Location
o Lease Rate Growth in East and West Cairo: East and West
Cairo lead in lease rate growth, driven by demand for
organized retail spaces, while future forecasts suggest
moderated increases in tandem with currency
fluctuations and established escalation rates.
o Disparity in Off-Plan Sales Rates: There is a considerable
disparity in off-plan primary market sales rates between
Grade A and Grade B retail developments due to their
target market, superior facilities, and enhanced
shopping experiences.
Offices Supply and Demand Dynamics

Source: Savills Egypt.

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Analyst Certification
I (we), Ayman Elshahed, Equity Analyst, employed with Mubasher International, a company under the National
Technology Group of Saudi Arabia being a shareholder of Mubasher for Securities and Bonds (c) and author(s) to this
report, hereby certify that all the views expressed in this research report accurately reflect my (our) views about the
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Issuer of Report
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Website: www.MubasherTrade.com
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E-mail: Research@MubasherTrade.com
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 Research Team
Ahmed Abdelnaby, FMVA, CMSA
Head of Research
ahmed.abdelnaby@mubasher.net

ahmed.abdelnaby@mubasher.net

Mohamed Anis Ayman Elshahed, FMVA Ibrahim Adel, FMVA

Senior Equity Analyst @mubasher.net
Equity Analyst Equity Analyst @mubasher.net

mohamed.anis@mubasher.net Ibrahim.Adel@mubasher.net
ayman.elshahed@mubasher.net

ayman.elshahed@mubasher.net

Ahmed Jamal
Equity Analyst med.jamal@mubasher.net

ahmed.jamal@mubasher.net

Contact Details

Research Team Institutional Sales | Egypt

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research@mubashertrade.com institutions-egy@mubasher.net

+ 2022587985 +202 22623310

RETAIL SALES | Egypt REGIONAL & INTERNATIONAL SALES

egypt@mubashertrade.com inst.sales@mubasherfs.com
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