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Sources to Asharq: 3 EGX-listed real estate companies join Egypt’s state asset sale program

Heliopolis for Housing and Development among targets

What:

The Egyptian government is aiming to decrease its stakes in three subsidiaries of the Holding for Construction and Development, which are listed on the EGX, transitioning to minority ownership, as revealed by a government official speaking with “Asharq Business” anonymously.

The targeted companies include Heliopolis Company for Housing and Development, Zahraa Maadi Investment and Development, and El Shams Housing and Urbanization.

So What:

Currently, the government-owned Holding Company for Construction and Development holds approximately 72.25% of shares in Heliopolis for Housing and Development, 44.54% in El Shams Housing and Urbanization, and 47.6% in Zahraa Maadi Investment and Development.

The initiative, according to the official, seeks to reduce these stakes to less than 20% by early 2025. This move aims to pave the way for increased private sector involvement in management, aligning with the state’s strategy for maximizing the value of these entities through partnerships with the private sector.

Some Context:

In a bid to bolster dollar liquidity, Egypt has recently engaged in asset sales to investors. Since the initiation of the state asset sale program in March 2023, Egypt has successfully raised up to USD 3.1 billion. This follows a USD 2.5 billion divestment from government assets in 2022.