Several local and foreign institutions are keen to acquire a stake in Compass Capital-owned real estate developer Bonyan, sources told Daily News Egypt. The sources said that these institutions are in talks with Compass Capital and that the National Bank of Egypt (NBE) and Al Baraka Bank are among the local entities that are currently negotiating, along with some other Egyptian and foreign investors. Bonyan specialises in managing and leasing administrative and commercial buildings. The sources also said that Compass is preparing the necessary steps to apply to the Financial Regulatory Authority (FRA) to transform Bonyan from a company to a real estate fund, to benefit from the incentives offered to real estate funds. Compass Capital aims to change the ownership structure of Bonyan, which it owns, into a real estate fund and to list it on the stock exchange shortly. It is in the process of submitting the required documents for the conversion to the financial regulator. The sources explained that this move will not affect the company's plan to acquire 40,000 square meters of administrative space in the coming period, while it currently manages over 150,000 square meters under its control. Tarek Abdel Rahman, the CEO of Compass Capital, had previously stated that the company's ownership is divided between 40% for Compass shareholders and 60% for other investors. He added that Compass's business model is mainly based on investing its shareholders' funds in the acquisition entity, with stakes ranging from 20% to 40%, and the rest is from other parties who are interested in partnering. Compass Capital operates in direct investment and also in financial consulting for merger and acquisition deals. It owns stakes in companies such as Bonyan and Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda).
