Pioneers Holding Company for Financial Investment plans to invest an estimated EGP 1.7bn in Egypt before the end of the year. These investments range from acquisitions to capital increases in subsidiary companies of the group.
The group’s activities will focus on expansion through its real estate and housing sectors, as well construction, food, manufacturing, and complementary activities, General Manager Waleed Zaki said in a press release. The company also has several opportunities to acquire companies unlisted on the Egyptian Exchange (EGX).
The investment portfolio of the group is diverse, including stakes in real estate companies such as Cairo Housing and Development Company (CHD), United Housing and Development, Royal Real Estate, El Saeed-Contracting, and Giza Contracting. The group also has stakes in food companies such as Arab Dairy, as well as industry companies including Egyptian Electrical Cables and Universal for Packing Materials and Paper, in addition to other companies.
Pioneers’ strategy is based on the establishment of subsidiary companies to include new investments, so as to enable partnership easily in any of the sectors the group operates in.
The IPO for Roaya Real Estate is scheduled to be completed this year and the company is completing all legal formalities to schedule it, Zaki said.
Baker and McKenzie has been chosen as the legal adviser for the IPO. PricewaterhouseCoopers will be a consultant to assess Roaya before the offering.
Pioneers Holding plans to accelerate the existing luxurious housing projects, which are currently being implemented by Roaya, by using the group’s land of 10m sqm.
The group is also studying launching new direct investment funds, being one of the main axes of the company’s growth plans, as part of a package of new products expected to be launched over the next two years.
The group manages two funds: Al-Raed, an equity fund with a capital of EGP 50m, and a real estate direct investment fund of a capital of EGP 126m. The later has achieved revenue double what it achieved in 2010, Zaki said.
Zaki explained that the funds’ investments are concentrated in the financial sector and in real estate investment with the participation of many major financial and banking institutions in Egypt.
The group will focus on the domestic market primarily, where it has no intention to expand at the moment.
Pioneers has invested more than EGP 3.6bn over the past three years by acquiring several companies in different sectors.