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Abu Dhabi’s Aldar considers buying Madinet Nasr

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An informed source was quoted by Bloomberg as saying that Aldar Properties is considering purchasing a majority stake in the Egyptian real estate development company Madinet Nasr Housing. This transaction would strengthen the presence of the Emirati company in the most populous country in the Arab world.

According to the sources, the talks are still in the preliminary phases, and an offer may not be on the horizon.

Nasr City is partially owned by the Egyptian government, which holds a 15% share in the company. According to Hisham Tawfiq, the Egyptian Minister of Public Business Sector, Al-Dar had expressed interest in the Cairo-based developer; however, the offer had not yet materialized at the time of Hisham’s statement.

While “Al-Dar” declined to respond, “Nasr City” declared in a statement to the Egyptian Stock Exchange that it had not received any tender offers. This statement was made on Tuesday. Board member Salah Katamesh said he had nothing else to add to what he had already said to Bloomberg.

In the previous year, Aldar had purchased a majority position in another Egyptian development corporation known as Sixth of October Development and Investment, or SODIC. In 2018, SODIC made a bid to purchase at least 51 percent of Nasr City, but their offer was not accepted and they did not move forward with their bid. It was possible that the transaction would have resulted in the formation of the largest developer in the country.

Aldar, which has the majority of its operations in Abu Dhabi, is trying to expand internationally because the company sees limited development potential in the market it now plays in. According to “Bloomberg,” the real estate developer plans to invest 5.6 billion dirhams ($1.5 billion) in purchases this year and is aiming to boost its assets from income-generating properties. In addition, the developer is looking to increase its asset base.

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