CAIRO: Palm Hills Developments (PHD), an Egypt-based real estate developer, saw an 859 percent increase in net sales to LE 765.9 million ($144.5 million) in the first half of 2008, up from LE 79.9 million ($15.1 million) during the same period last year. The company released its consolidated financial results for the first half of 2008 Monday, saying that the "top line progress is driven by solid contributions from all available projects including our first contribution form the Bamboo Extension Project. Contracts at Hacienda Bay, Casa, Bamboo Extension and Golf View projects drove contracts value to LE 1,897.6 million ($358 million) during the reporting period, versus LE 214.4 million ($40.5 million) in 2007. Yasseen Mansour, chairman and CEO of PHD, said, "The first half of 2008 saw solid sales growth, strong financial results and increased shareholders' return. PHD has managed to compile a number of absolute advantages that will continue to sustain its remarkable performance, all the way from securing exclusive affiliations with strategic partners to maintaining a formidable sales team that excels in exceeding sales targets every quarter. According to the press statement, new contracted units totaled 1,145 units compared to 252 units the previous year. Earnings before interest and tax grew 1,937 percent to LE 480.6 million ($90.7 million), up from LE 23.6 million ($4.5 million) last year. In addition, Palm Hills Developments' net profit grew 1,498 percent to LE 362 million ($68.3 million). PHD sold 62 percent of phase I of the Village Gate project in New Cairo within 30 days of its launch in June 2008. It has also pushed up its scheduled delivery dates for phases 6 of Bamboo project from December 2008 to August 2008 and phase 7 of Golden Palms project from June 2009 to November 2008 In early May, PHD said it would begin trading on the main London and Egyptian stock exchanges after pricing its $201.3 million initial public offering. The offer price was set at LE 21.75 per share and $20.31 per Global Depository Receipt (GDR), the company said in a statement. The pricing achieved gives Palm Hills an implied market capitalization of around $1.88 billion, and the net IPO proceeds will be used to fund existing and planned development projects in Egypt and abroad. The firm was founded in 2005 by Mansour and Maghraby Investment and Development, and now it's property portfolio has a market value of $3.5 billion, according to property consultant CB Richard Ellis.
