CAIRO May 7 U.S private equity firm Ripplewood
has acquired a 2.3 percent stake in Egyptian developer Palm
Hills, it said on Wednesday, adding that it hopes to
increase its stake.
"We believe Palm Hills is well-positioned as one of Egypt's
leading real estate developers and hope that we can help enhance
the company's efforts in its development of new projects," said
Timothy Collins, Ripplewood's founder and CEO.
"We are also confident in the future prospects of the
company as we expect to increase our stake over time after this
initial investment," he added.
Palm Hills is the country's second largest listed property
developer. It struggled in 2012 after it faced investigations
into previous state land sales and client cancellations
following an uprising that toppled autocrat Hosni Mubarak in
But in 2013 it turned a profit, making 236.8 million pounds
($402.38 million) compared with a net loss of 134.6 million in
the previous year.
On Monday the firm said it is in talks with the Arab African
International Bank (AAIB) over a 2.4 billion pound loan which it
will use to finance projects and refinance around 640 million
pounds from its current bank loans.
($1 = 0.5885 British Pounds)
(Reporting by Asma Alsharif; editing by Jason Neely and Louise