Bonyan’s post-IPO playbook: Fresh off a successful IPO, Bonyan’s first results as a public company point to healthy growth in asset values, outpacing inflation, alongside a solid jump in rental revenues. The uplift is underpinned by near-full occupancy, FX-linked lease adjustments, and a lean cost base. We sat down with CEO Tarek Abdel Rahman to unpack what’s in the pipeline and how the market is shaping up.

EnterpriseAM: How do you see Bonyan’s performance in the first half?

Tarek Abdel Rahman: Bonyan is a unique model on the EGX and in Egypt in general. We are a real estate investment company that acquires properties with a focus on built and leased office buildings. Our model is closer to a Real Estate Operating Company (REOC). It’s a widely used model abroad: we invest in real estate and have the flexibility to use cash flows for reinvestment. Real estate investment trusts (REITs), by contrast, are required to distribute 90% of cash flows. We are closer to the REOC model.

When assessing the company’s performance or health, we first look at the Gross Asset Value (GAV). We engage a valuer licensed by the financial regulator every quarter. The latest valuation of GAV came in at EGP 17.4 bn by end of 1H 2025, up 9% from 31 December 2024. When you compare that increase to inflation; inflation was 7.9% at the time, meaning assets grew by about 1.1 percentage point above inflation.

We also track rental revenues, which increased by 22% in 2Q and by 35% to EGP 345 mn in 1H. The increase came from raising the occupancy rate from 88% to 96%, renewing tenant contracts, and adjusting USD linkage in some agreements. We have 10 assets with a total gross leasable area of 148k sqm, while eight assets are effectively included on the balance sheet.

On the cost side, direct expenses are limited (around 20–21% of rental revenues) — security, property management, etc. — making the business highly profitable.

EnterpriseAM: How did the real estate market perform in your segment?

Abdel Rahman: Indicators are positive: assets were up 9% and rents increased. We renewed six tenants at higher rates (representing 10% of rental value), and we added new tenants in existing buildings.

EnterpriseAM: With inflation receding, do asset prices continue to rise?

Abdel Rahman: Yes. The relationship is tied to inflation: for example, with 30% inflation, property prices might rise around 40% annually; with 10% inflation, you might see increases of about 15%. There’s no logic for excessive price jumps with low inflation in a stable environment.

EnterpriseAM: Your earnings release mentioned a “retail asset sales” line — what is it?

Abdel Rahman: We have 2.3k sqm earmarked for sale. Sometimes banks or other clients prefer to buy rather than lease, so we sell to them. We have previously sold 17k sqm to Banque Misr, the National Bank of Egypt, CIB, and Metro supermarket. Currently, only 2.3k sqm are available for sale; we’re not in a rush and will wait for the optimal price.

EnterpriseAM: What is your investment plan following your successful IPO?

Abdel Rahman: The IPO included a EGP 250 mn capital increase. Our model — especially in a high interest rate environment — is to acquire a building financed 65-70% by banks and the rest is self-funded. Since we buy built, income-generating assets, rents service the debt over 7-8 years. After that, the asset becomes debt-free and could be worth triple its current value.

EnterpriseAM: ِDo you have any upcoming acquisitions in the pipeline?

Abdelrahman: During the IPO we said we were in negotiations over seven buildings. We are now in final negotiations to acquire a 5k sqm asset.

EnterpriseAM: Do you still prioritize East and West Cairo?

Abdel Rahman: Yes, East Cairo, then West Cairo.

EnterpriseAM: Are there still sufficient prime locations for expansion?

Abdel Rahman: Absolutely. In New Cairo, for example, North and South 90 Street; and in Sixth of October, the Sheikh Zayed Axis, Smart Village, etc. The options are plenty.

EnterpriseAM: Developers are increasingly focused on offices and recurring income, managing assets themselves or via third parties. Do you feel competition?

Abdel Rahman: The majority of developers sell on plan; a minority retain and manage. We’ve previously bought from developers like Redcon.

EnterpriseAM: What about your property and facilities management operations?

Abdel Rahman: It’s a core part of the business, but we outsource a lot of it to specialized firms. Property management for the commercial segment is handled in-house; for office assets, we use a specialized company. Facilities management — security, cleaning, maintenance, landscaping — is a standardized service that any qualified provider can deliver.

EnterpriseAM: Do you expect more competition as real estate funds are activated and PropTech develops?

Abdel Rahman: Yes. There will be competition from real estate funds. At its core, Bonyan is a fund in the form of a company that owns income-generating assets. A growing market benefits everyone. We’ve heard of entities applying for fund licenses and we hope that happens.

EnterpriseAM: How does the office supply-demand balance look?

Abdel Rahman: Demand in Egypt is around 9.5 mn sqm, while supply is 3.2-3.5 mn sqm — a gap of about 6-6.5 mn sqm. By 2029-2030 the gap could shrink to around 4 mn sqm.

EnterpriseAM: What’s your target through 2030?

Abdel Rahman: We announced that over the next 18 months we aim to buy 15-20k sqm. Execution depends on price, asset location, sale terms, and due diligence outcomes.

EnterpriseAM: After the amendments to the Old Rent Law, do you see opportunities in Downtown Cairo, for example?

Abdel Rahman: We’re monitoring developments; once the picture is clearer, we’ll assess the opportunities.

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