EFG Hermes Head Office/Supplied
The partnership seeks to offer long-term and competitive mortgages for new move-in homes, increasing affordability and supply to better serve Egypt’s growing population of homebuyers.
Thursday 18, April 2019 BY KUDAKWASHE MUZORIWA
EFG Hermes Finance, TMG and GB Capital have entered into an agreement to create a mortgage finance joint venture serving Egypt’s large and growing population of homebuyers, each company will hold one third of the joint venture’s equity.
Hisham Taalat Moustafa, the Chief Executive Officer and Managing Director of TMG Holding, said, “The new joint venture will capitalise on TMG’s four decades of experience in real estate development and over 100,000 units across the Group’s multiple projects.”
In a statement, EFG Hermes said that the new entity, whose brand name will be revealed at a later date, will have an initial paid-in capital of EGP 150 million and is expected to be increased to EGP 250 million as the business grows.
The joint venture will offer mortgage finance to all consumers looking to buy move-in homes across TMG’s existing projects and potential developments.
Additionally, the new entity will take place at the level of an existing mortgage finance company that is currently owned by TMG, where the parties will increase the company’s capital to allow each to have one-third ownership.
The deal is subject to the approvals of the Financial Regulatory Authority (FRA) and other regulatory approvals. EFG Hermes Investment Banking is acting as the sole financial advisor on the transaction.