Fact sheet: Madinet Nasr for Housing and Development

Who Owns Cairo: Case Study Companies

Overview

Name: Madinet Nasr for Housing and Development SAE MNHD.CA

Established: 1959 (SOE)

Listed on EGX: 1995

Scope and activities: The Company is engaged in activities related to development of land, buildings and facilities, including acquisition of land, real estate sale and rental, dividing it and providing all types of facilities for reconstruction and connected to it in Nasr City and other areas nationwide. It also establishes, manages and invests in all residential, administrative, touristic, recreational and all projects, and real estate operations, financial, commercial and entertainment, as well as carrying out design, engineering and consultancy. ^[1]

Company Vitals:

How much land does MNHD own in Cairo?

MNHD has the sixth largest landbank in Cairo under the de jure method (see Methodology) at 2464 acres (See Appendix A). This comprises mostly of two large plots, one of which was undeveloped land on the Eastern outskirts of the Madinet Nasr district in Cairo, that the company developed since the 1960s, and the other a relatively recent assignment in New Cairo. MNHD’s landholdings only fall slightly to 2360 acres under the control method (see Methodology), ranking it also sixth among the case study companies, as it sold land and went into a co-development agreement with PHDC. The timeline for land acquisition is very flat for MNHD, which even though was listed over 25 years ago, and majority privatised in the 2000s, has not bought any significant land in Cairo since, relying on the landbank it was given by the state when it was still (fully) government owned (Figure 1).

Figure 1: MNHD landbank accumulation analysis – Control Method 2002-2021 (Acres). Sources: See Appendix A

Who Owns MNHD?

MNHD was founded by the Egyptian government in 1959 to develop its namesake Madinet Nasr district in east Cairo. The company was listed on the EGX in 1995, and remained majority state owned, until 2008 when a group of private investment funds bought a majority stake. This group was still the major shareholder in 2021 holding 27% of MNHD through the EGX listed B Investment Holding (BINV.CA), the British Virgin Islands (BVI) based BIG Investment Group, and BPE Capital Ltd (Figure 2).  The listed company’s major holders are well known Egyptian and Saudi investors many of which have holdings in other real estate companies. However, the related offshore fund’s subscribers remain anonymous.[2] With a holding of 22%, the Government of Egypt is the second largest shareholder, through three SOEs including MNHD’s original owner ,the Holding Company for Construction and Development (HCCD). MNHD’s third largest holder is the Saudi Olayan family (3.63%), who have minority holdings in other companies such as SODIC. Global fund Vanguard is the fourth largest shareholder (2.26%), leading other funds. Around 45% of MNHD is held by anonymous smallholders on the EGX.

Figure 2: MNHD shareholding structure according to the UBO method as of 2021 Q4 (See Appendix B)

Investor Nationalities

Egyptians hold 47% of MNHD (Figure 3), and that is under the tax residence method (See Methodology). The second largest group is that of unidentifiable smallholders on the EGX free float holding about 23% of the company. This is followed closely in third by the British Virgin Islands (BVI) holding 20% of MNHD. Saudi Arabia is the fourth largest holder at almost 5% of shares, followed by the UAE and funds in Western countries.

Under the UBO method (see Methodology), investors from Egypt remain the largest holders at 47%. However, they are followed closely by ‘unknown’ investors who hold 46% of MNHD, as the BVI fund’s shares, along with stock market free float smallholdings are added. Saudi Arabia is the third largest holder at almost 6%, followed by the UAE, the UK and the EU.

Figure 3: MNHD shareholding by nationality under the TR and UBO methods

Investor Types

Smallholders on the EGX free float represent the single largest investor type by far, holding 46% of MNHD (Figure 4). The second largest group are Private Companies (mostly the BVI fund), owning 23% of the company. These are equal to SOEs who hold a similar share. Families/individuals are the smallest shareholder in MNHD at 8% of holdings.

Figure 4: MNHD shareholding by investor type – UBO

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Appendix A: Landholding Information

Appendix B: Shareholding Information

Direct Shareholding:

Indirect Shareholding:

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Notes and references

^[1] MNHD Consolidated Financial Statement for the year ended 31.12.2021, p.10

[2] MNHD and BPE Partners were contacted for information, but non was released citing confidentiality.