Banque Misr’s EGP 3 bn real estate fund would be equivalent to nearly one-quarter of the segment’s current net asset value

Banque Misr is preparing a EGP 3 bn fund to acquire leased offices in Fifth Settlement. The bank is targeting a launch before year-end, pending approval from the Financial Regulatory Authority, and will partner with an unnamed developer to invest in completed, occupied administrative buildings that can generate recurring rental distributions.

The thesis: The fund will be buying into a market where Bonyan estimates Egypt will face a 4.5 mn sqm shortfall in grade-A office space by 2028. Much of the existing supply is divided into smaller units. That’s a problem for multinational tenants, who are increasingly seeking large, contiguous spaces under one roof and prefer leasing over owning.

IN CONTEXT- Real estate funds accounted for 2.68% of the market’s 224 investment funds at the end of June — equivalent to six vehicles — with combined net assets of EGP 12.62 bn, according to the FRA’s latest quarterly fund report (pdf). At its target size, Banque Misr’s vehicle would be equivalent to nearly one-quarter of the segment’s current net asset value. The regulator said in May that it was reviewing 23 additional real estate-fund applications.

A hospital wager

Saudi German Hospitals Group plans to invest more than EGP 150 mn in Alexandria this year, Saudi German Hospital Alexandria manager Mohamed Lallo tells EnterpriseAM. The investment will go toward launching 35 specialized clinics in the city. The group will also begin operating its first hospital in Morocco this year and is planning another in Pakistan, though Lallo did not disclose the investment size or timeline for either project.

The group’s planned Giza hospital remains on hold. The project carries an estimated investment cost of USD 100 mn, but the decision to begin investment and construction has not yet been taken, Lallo said.

A fertility tourism partnership: Saudi German is targeting 25-30% of Gulf demand for fertility and IVF services in Egypt through a new partnership with Alexandria-based IVF center Conceive, according to Lallo.

REMEMBER- Saudi German’s local expansion has been years in the making. The group said in 2019 it planned to invest EGP 40-50 bn over 15 years, before outlining plans for a 300-bed medical complex in 6 October City alongside its Alexandria expansion. The government is also preparing to offer 62 healthcare projects to the private sector, including facilities that could support medical tourism.

Keeping Libya lit

Egypt has raised its electricity export capacity to Libya by 43% to 100 MW. The increase is meant to support Libya’s grid after a widespread collapse last month. The two sides have also agreed to reduce interest on late-payment penalties tied to some USD 90 mn in overdue Libyan electricity dues to Egypt.

IN CONTEXT- Egypt began feeding power into Libya in July after a sudden grid collapse knocked around 1.35 GW from the system. The two countries have been discussing expanding their electricity interconnection to 2 GW from around 150 MW, making the latest increase a near-term support measure rather than the larger strategic upgrade.