MENA Property- Egypt. Summary of recommendations. We play high-end developers in a floating currency environment. S e c t o r C o v e r a g e

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1 S e c t o r C o v e r a g e N o v e m b e r 30, Mohammad Kamal mohammad.kamal@arqaamcapital.com Emad El-Hage emad.elhage@arqaamcapital.com Mohamad Haidar, CFA mohamad.haidar@arqaamcapital.com MENA Property- Egypt We play high-end developers in a floating currency environment Currency devaluation has eroded household income, and wage growth will likely lag inflation in the next 2 years. We see a decline in volumes and a normalization in price growth: We think that at this juncture, where devaluation has already played out, both (i) the appetite for property as a currency hedge, and (ii) the ability of property to perform the role of a hedge, will subside. We consequently think that residential demand will now become much more discerning with regards to value-formoney, quality, and resale value. Play high-end, where expat demand is most relevant: Low-end property, which is not typically purchased as a hedge but rather for socioeconomic reasons (providing accommodation for children of marrying age), will continue to find numerous buyers for every unit offered for sale, but end buyer welfare and consumer confidence is currently heavily burdened by inflation. Mid-range property that has experienced a steep upward trajectory in asset values should see asking prices stabilize, and transaction volumes recede. High end property, which attracts expatriate demand from GCC-domiciled (and effective USD-earning) buyers, should see a surge in demand, thanks to a cheaper EGP. We like SODIC most in this context. Though rentals in new build districts do grow by at least the inflation rate, prices have ran far ahead, due to government land auctions, in which prices have grown >50% in the past 3 years. Yields have tightened. Real estate in Egypt lacks a self-correction mechanism as mortgage penetration is minimal. Rental yields do not influence home ownership decisions, allowing asset prices to move aggressively into bubble territory. This scenario has led to the appearance of land donors and home builders : Developers that own large swathes of cheap land are increasingly replacing government auctions as a source of raw land. Builders with strong brand equity and track record take on the sales risk. JVs have appeared across the board as a result. Though the economics favour home builders, we prefer to play this via land donors, where execution risk is mitigated, RoE enhancement is easier to achieve, and NAV is cemented by land monetization. We play co-development themes through MNHD and Heliopolis (not covered). Earnings multiples are not indicative, as IFRS adoption is unlikely in the near-term. Cheap on P/E is not an argument for value. We prefer P/NAV where NAV is conservatively calculated. We see modest upside as current P/NAV is in line with regional peers: MENA property trades at P/NAV of 0.7x, and Egypt is inline with regional comparables. We target P/NAV of 0.85x for strong balance sheets, brand equity, and recurring income. SODIC and MNHD fit the bill. Where we see execution risk, but value: PHD still offers value, but due to leverage, requires greater confidence in future sales and uptake levels than has been experienced so far (c.50%). Where market re-rating has overshot: Current market valuation has excessively rewarded TMG for USD-denominated/linked hotel income, and ERC for USD land sales and receivables. At 0.9x current P/NAV, market valuation has overshot in our view, and overlooks USD debt and execution risk at TMG, and collection risk and earnings volatility at ERC. We downgrade TMGH to Sell. Summary of recommendations Bloomberg code MNHD EY Company name Madinet Nasr Housing Price target EGP 25 Rating Buy Bloomberg code OCDI EY Company name Six of October Price target EGP 21 Rating Buy Bloomberg code PHDC EY Company name Palm Hills Developments Price target EGP 3.9 Rating Buy Bloomberg code EMFD EY Company name Emaar Misr Price target EGP 2.5 Rating Hold Bloomberg code TMGH EY Company name Talaat Moustafa Price target EGP 7.5 Rating Sell Bloomberg code EGTS EY Company name Egyptian Resorts Company Price target EGP 0.82 Rating Sell Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice.

2 Real estate Table of contents Contents Coverage Universe... 3 Market Analysis Valuation Company profiles Six of October Madinet Nasr Housing Palm Hills Development Emaar Misr Talaat Moustafa Egyptian Resort Company Appendix Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 2

3 Aldar DAMAC REIT Emaar Malls Mabanee Emaar SODIC DIC MNHD PHD Eshraq ERC TMG EMFD Alarkan SRECO Emaar Malls Alarkan TMG DAMAC REIT EMFD ERC Mabanee SRECO DIC SODIC PHD MNHD Emaar Aldar tp/nav CMP/NAV Coverage Universe Egypt property names in a regional context Exhibit 1: MENA Real estate coverage universe Rating Upside TP TP/NAV Current P/NAV Discount/premium P/E FY 16e P/E FY 17e EV/EBITDA FEV/EBITDA FP/BV FY 16eRoE FY 16e Dividend yield FY 16e Emaar Buy 52% % % 3% Aldar Buy 75% % % 4% Damac Hold 21% % % 11% DIC Buy 29% % % 5% Emaar Malls Hold 12% % % 4% REIT Buy 16% % % 7% UAE % % 5.7% TMG Sell -14% % % 2% SODIC Buy 33% % % 0% MNHD Buy 34% % % 1% ERC Sell -13% % % 0% EMFD Hold -16% % % 0% PHD Buy 25% % % 0% Egypt % % 0.5% Arkan Hold -22% % % 0% SRECO Hold -14% % % 4% KSA % % Mabanee Buy 20% % % 1% Mazaya Buy 39% % % 5% Kuwait % % 1.2% Exhibit 2: tp/nav Exhibit 3: CMP/NAV Exhibit 4: RoE vs. NPM FY 16e NPM 100.0% REIT 80.0% Mabanee 60.0% Emaar Malls SRECODIC DAMAC Aldar EMFD 40.0% MNHD Emaar Alarkan SODIC 20.0% PHD TMG 0.0% Eshraq UP -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% -20.0% ERC -40.0% -60.0% FY 16e RoE Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 3

4 MNHD DAMAC EMFD Mabanee SODIC Emaar Malls DAM MNHD Emaa DIC Mab Aldar EMFD Emaar REIT PHD SRECO SODIC TMG Alark Emaar Aldar PHD DIC REIT SRECO TMG Alarkan Eshraq MNHD EMFD SODIC TMG Emaar SRECO Emaar Malls Mabanee DIC Aldar UP DAMAC PHD REIT Alarkan Eshraq ERC Alarkan MNHD TMG Emaar Malls SRECO Mabanee SODIC EMFD PHD Emaar REIT DIC Aldar DAMAC Emaar Malls DAMAC EMFD SODIC ERC Eshraq Emaar PHD Aldar DIC SRECO REIT UP TMG MNHD SODIC Aldar PHD REIT Emaar TMG SRECO Emaar Malls Mabanee DIC EMFD Eshraq Alarkan DAMAC UP ERC Coverage Universe Egypt property names in a regional context Exhibit 5: P/E FY 16e Exhibit 6: P/B FY 16e Exhibit 7: Revenue growth FY 16e % 100% 50% 0% 106% 35% 27% 25% 21% 13% 13% 11% 9% 4% 3% 3% 2% % -18%-19% -100% -38% -79% Exhibit 8: RoE FY 16e Exhibit 9: RoA FY 16e Exhibit 10: EPS growth FY 16e 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 40% 30% 16% 15% 12% 12% 12% 12% 10% 10% 8% 5% 4% 1% 0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 14.4% 11.1% 7.8% 7.2% 7.1% 7.0% 6.5% 5.8% 5.0% 3.8% 3.0% 2.9% 1.7% 0.9% 200% 150% 100% 50% 0% -50% -100% -150% 153% 49% 47% 31% 26% 21% 19% 4% 4% 3% 0% -22% -30% -33% -38% -91% -120% Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 4

5 Aldar Properties Dar Al Arkan Emaar Properties Talaat Mostafa Saudi Real Estate Palm Hills Madinet Nasr Six of October Mabanee Emaar Misr NRE Al Mazaya Talaat Mostafa Dar Al Arkan Aldar Properties Emaar Properties Madinet Nasr Palm Hills Saudi Real Estate Six of October Mabanee NRE Emaar Misr Al Mazaya Emaar Misr Dar Al Arkan Aldar Properties Talaat Mostafa Madinet Nasr Palm Hills Saudi Real Estate Mabanee Six of October NRE Al Mazaya m sqm USD m USD m Coverage Universe Land banks Exhibit 11: Land bank area (mn sqm) Exhibit 12: Value of land bank (marked to market) Exhibit 13: NAV value of land bank (discount to M2M) ,000 20,000 15,000 10,000 5,000-22,298 4,533 2,684 2,581 1, ,000 2,500 2,000 1,500 1, ,581 2,320 1,798 1, Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 5

6 Emaar Properties Six of October Emaar Misr Talaat Mostafa Aldar Properties Madinet Nasr Damac Properties Al Mazaya Palm Hills NRE Dar Al Arkan Talaat Mostafa Damac Properties Emaar Properties Palm Hills Emaar Misr Six of October Madinet Nasr Al Mazaya Aldar Properties NRE Dar Al Arkan Damac Properties Emaar Properties Emaar Misr Talaat Mostafa Aldar Properties Palm Hills Six of October Madinet Nasr NRE Al Mazaya Dar Al Arkan Damac Properties Emaar Properties Emaar Misr Aldar Properties Palm Hills Talaat Mostafa Six of October Al Mazaya Madinet Nasr NRE Dar Al Arkan USD m USD m Coverage Universe Development pipelines Exhibit 14: Development portfolios: Projected sales (by unit count) Exhibit 15: Development pipeline: projected sales (by value, USDm) Exhibit 16: Development pipeline: CAPEX, USDm 70,000 60,000 50,000 40,000 30,000 20,000 10,000-64,641 40,000 29,625 19,088 9,303 7,205 5,959 5,000 4,863 1, ,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000-16,740 10,970 7,295 3,635 3,313 3,184 1, ,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000-8,705 6,362 4,123 2,319 1,123 1, Exhibit 17: Uptake levels: reported/observed, since launch (overall portfolio) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 95% 94% 93% 86% 83% 65% 60% 60% 53% 50% 30% Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 6

7 Aldar Properties Emaar Properties Talaat Mostafa Palm Hills Emirates REIT Emaar Malls Saudi Real Estate Mabanee Aldar Emaar NRE Talaat Mostafa Mazaya SODIC Dar Al Arkan Emaar Misr PHD Emaar Properties Aldar Properties Emaar Malls Mabanee Talaat Mostafa Saudi Real Estate Emirates REIT NRE Dar Al Arkan Al Mazaya Emaar Misr Six of October Palm Hills Dar Al Arkan Emaar Properties Aldar Properties Saudi Real Estate Emaar Malls Al Mazaya Mabanee NRE Emirates REIT Six of October Emaar Misr Palm Hills Emaar Malls Emirates REIT Mabanee Saudi Real Estate Aldar Properties NRE Emaar Properties Talaat Mostafa Six of October Al Mazaya Dar Al Arkan Palm Hills Emaar Misr USD m k sqm Coverage Universe Recurring income Exhibit 18: Recurring revenues Exhibit 19: Gross Leasable Area Exhibit 20: Contribution to total revenues 1,800 1,600 1,400 1,200 1, ,590 1, ,400 1,200 1, , % 100% 80% 60% 40% 20% 0% 100% 100% 100% 100% 65% 50% 38% 20% 15% 12% 7% 5% 3% Exhibit 21: Hotel keys Exhibit 22: Recurring income/opex 3,000 2,500 2,000 1,500 1, ,536 2, % 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% 470% 425% 253% 146% 138% 117% 74% 23% 16% 5% 3% 3% 1% Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 7

8 Coverage Universe Key views We play high-end developers post EGP-devaluation Real estate is no longer the only way to shelter from inflation and weak EGP High end property becoming more affordable for expats Hotel revenues should recover Affordability is now front and centre: Property developers in Egypt have performed the role of devaluation and inflation hedges for the past 2 years. In our recent note, we argue that ability of property assets to hedge against macro risk through growth in asset values is coincidental at best; asset values have trended up due to the absence of an active, regulated secondary market, and inflation in primary market asking rates. Primary rates/sqm have grown thanks to cost-push factors, such as land auction prices, rather than a yield mechanism (in fact, implied real yields in residential property have been negative overall). As such, the growth in property prices is ultimately constrained by very real affordability limits, which across several segments (high end included), have been breached. We see a decline in volumes and a normalization in price growth: We think that at this juncture, where devaluation has already played out, both (i) the appetite for property as a currency hedge, and (ii) the ability of property to perform the role of a hedge, will subside. We consequently think that residential demand will now become much more discerning with regards to value-for-money, quality, and resale value. Play high-end, where expat demand is most relevant: Low-end property, which is not typically purchased as a hedge but rather for socioeconomic reasons (providing accommodation for children of marrying age), will continue to find numerous buyers for every unit offered for sale, but end buyer welfare and consumer confidence is currently heavily burdened by inflation. Mid-range property that has experienced a steep upward trajectory in asset values should see asking prices stabilize, and transaction volumes recede. High-end property, which attracts expatriate demand from GCC-domiciled (and effective USD-earning) buyers, should see a surge in demand, thanks to a cheaper EGP. Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 8

9 Coverage Universe Key views Exhibit 23: Foreign (non-resident) ownership demand is most relevant in high-end property, and trivial in low-to-medium end transactions 25% 20% 20% 15% 10% 10% 10% 5% 0% 5% 0% 0% EMFD EY PHDC EY OCDI EY MNHD EY TMGH EY EGTS EY Margin cuts via construction cost growth: Overall, we see a softening in margins for Egyptian property names, and factor in an overall 20-25% cut to our EPS estimates in Hotel operators (TMG, for the time being), should benefit from a rebound in tourist numbers in Exhibit 24: Egypt property: We lower our sector EBITDA estimate by 22% in FY 17e 2,500 2,000 1,500 1, Exhibit 25: while factoring in a 600bps compression in margins 70% 60% 50% 40% 30% 20% 10% - PHDC EY MNHD EY OCDI EY EMFD EY TMGH EY EGTS EY 0% PHDC EY MNHD EY OCDI EY EMFD EY TMGH EY EGTS EY EBITDA old EBITDA new EBITDAm old EBITDAm new Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 9

10 Coverage Universe Key views We are buyers of SODIC and MNHD, but also see value in PHD SODIC (Buy, EGP 21, +30% upside): SODIC holds the best NAV profile under coverage, as our math is 70% driven by visible cash flows derived from the next 5 years of handovers, covering 4k units (EGP 14bn revenues), plus recurring income. Sales underpinning our cash flow projections are 95% pre-booked, rendering our NAV calculation highly robust, and only subject to downside risk emanating from project execution. We reiterate Buy and further raise TP to EGP 21/share (+33% vs. old TP of EGP 16) to reflect (i) the newly signed JV with Heliopolis Housing (EGP 4/share, +20% to TP), which we still partially account for, through land revaluation rather than project DCF, (ii) the impact of rising land prices across Cairo (>20% y/y) on SODIC s land bank, and new launches (+14% to TP). We estimate 36% 4-yr EPS CAGR, excluding the JV with Heliopolis (>75% to EPS). True value in the stock is not a function of cheap P/E (11.3x/9.1x 16e/17e), since this is a function of accounting (Egyptian GAAP), but rather more demonstrable in P/NAV, which stands at 0.69x (vs. our target of 0.85x across quality MENA names), and is 70% driven by cash release against execution, plus recurring NOI (i.e. highly visible). MNHD (Buy, EGP 25, +30% upside): MNHD continues to hold high quality earnings, thanks to strong product uptake, while ROE remains best in class (>35%) thanks to ultra cheap land, even after incorporating a structural increase in construction costs (-500bps to GPM). The business is pursuing co-developed projects, in which it contributes land towards JVs, and accrues a substantial portion of the economics for very little risk. We continue to think that P/E is not a useful yardstick for value, as long as IFRS 15 is not adopted. On P/NAV, MNHD trades at 0.65x NAV, at a 10% discount to the broader MENA sector (and we see a target P/NAV of 0.85x). We reiterate our Buy rating and raise TP to EGP 25/share (+19% vs. our old TP of EGP 21/share) on more inclusive land valuation and a robust sales outlook. We model for property + land sales of EGP 9bn in our explicit forecast period, and 22% 5-yr EPS CAGR, as we include the launch of Sarai S1 (1.3k units, EGP 2.1bn sellable value) into our SoTP. Our NAV now stands at EGP 29/share, composed of 75% land, 21% developments, and 4% recurring income. Current market price resides at 0.65x P/NAV, leaving 30%+ in upside. PHD (Buy, EGP 3.9, +21% upside): PHD is a play on the high-end residential and secondary home market in Egypt. Reading through from 9M 16A sales data (EGP 5.4bn, +33% y/y), we continue to see reasonably strong uptake across launched projects (50% of 21k units sold, 47% of EGP 52bn), helped by PHD s brand equity. Our newly-revised EGP 3.9/share TP (+15%, +21% vs. CMP) is a product of (i) a development portfolio of 21k units (sellable value of EGP 52bn), which is 50% sold, and of which 55% has been handed over, (ii) recurring income assets, via 13k sqm of incoming GLA (>25% of EPS by FY 20e). Furthermore, the monetization of PHD s land bank of 26m sqm (44% under development) and disposals of non-core plots, along with the adoption of revenue-share schemes with JV partners (which involve lower initial cash outlays, resulting in significantly higher project IRRs), add further upside risk to EPS growth. We exclude PHD from our conviction Buy list due to the demonstrability of balance sheet pressure in the event that sales uptake weakens to <25%, at which point debt service potentially comes under pressure (net debt/ebitda 2.3x, interest cover 4x). Less levered peers in the Egyptian property space can arguably withstand a market correction more robustly. Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 10

11 Coverage Universe Key views EMFD holds limited upside at 0.9x P/NAV, while the outlook for ERC remains challenging. We downgrade TMHG to Sell TMG (Sell, EGP 7.5, 14% downside): With EGP 5.5bn (+6% y/y) worth of contracted sales booked in 9M 16A, TMG continues to show solid uptake for its residential product, but we expect sales to come under pressure in Household income has weakened markedly after the devaluation of the EGP, and this will likely derail sales growth at Madinaty in FY 17e, and stall further price increases, while construction costs should surge, squeezing margins by at least 500bps. We thus lower our revenue projections in FY 17/18e by 15%, and revise our margin assumptions by - 800bps to 25-30%, to account for cost inflation. We currently model for the sale and handover of c.13k units worth EGP 30bn over FY 16-25e (6% revenue CAGR FY 15-18e). We also tweak our hotel revenue estimates upwards by 12% to reflect increased revenues from hotel assets given USD-based ADRs, but keep our FY 17-18e occupancy rate assumptions low at c.40-50%. TMG s USD-denominated debt (60% of total debt) carries EGP m in financial charges per annum (+3x vs. previous estimates, at 4x interest cover), which lower our FY 17-18e EPS estimates by 40%. At 0.9x current P/NAV, current market valuation has overshot, excessively rewarding TMG for USD-linked income, and overlooks USD-denominated debt. We revise our TP upwards to EGP 7.5/share (-14% vs. CMP), but downgrade to Sell. ERC (Sell, EGP 0.82, 13% downside): Though the EGP devaluation implies translation gains due to land plots being priced in USD, it also implies that pricing discounts will be necessary to offload plots, and that receivables linked to existing sales will (i) be revalued upwards, and (ii) become susceptible to collection risk. ERC sells USD-denominated land plots to EGP-earning 3 rd party developers, rendering the business more prone to cyclical demand swings, and the overall state of the tourism market. We expect a c.40-50% drop in selling prices in USD terms to USD 70/sqm, to offset the 70% devaluation of the EGP. We keep our selling price estimates intact, but lower our FY 16-18e sales projections by 50% following a negative read-through from 9M 16A, in which ERC failed to recognize any sales of land plots. As for receivables, c.80% are denominated in USD, and are currently >1 year over due. We accordingly revalue receivables up by 70% to EGP 1.2bn, but apply a 50% discount to account for collection risk. The net effect vis-à-vis our TP is overall positive with a 10% increase to EGP 0.82/share, which is still 13% below CMP. Maintain Sell. The EGP float is a net positive for sales at EMFD (Hold, EGP 2.5), but overall negative for margins: 2016 has been a slow year for EMFD, with off-plan sales down c.20% in H1 (and we see a similar H2) as demand for upper-end units (EGP 7m+) fell in Cairo. We however expect off-plan sales to grow again in FY 17e by at least 30% to EGP 10.6bn, driven by escalation in nominal prices (+15-18%) and a pick-up in foreign demand for vacation homes in Marassi (8k+ residential units in the next 5-7 years). We review our revenue estimates upwards by 50% in FY 16/17e on improved handovers. We tweak TP to EGP 2.5 and maintain Hold. Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 11

12 Market Analysis At the source of property price growth is land auctions, not demand Land auctions prices can no longer be passed on- development margins should compress Land auction prices have grown >50% since This has been a function of a revival in end-user homeownership demand, as well as government auctions, which arguably provide a means by which to plug near term gaps in government finances. In our view, any further increases would not be passable into residential prices. Exhibit 26: As an exercise, assuming growth in selling prices winds down to <10%, a continuing surge in land prices (>10% per annum) can squeeze margins by at least 300bps, per year, excluding the anticipated surge in construction costs 25,000 20,000 15,000 10,000 30% 27% 23% 20% 16% 13% 35% 30% 25% 20% 15% 5,000 10% 7% 10% 5% % Land cost Construction cost Selling Price Margin Source: JLL, Company Data, Arqaam Capital Research Exhibit 27: Government-auctioned land prices in East Cairo rose by >50% since 2013, with recently-concluded auctions settling in the range of EGP k/sqm Auctions JVs Seller Buyer Location Land area (sqm) Price (EGP/sqm) Marina Way Lagoon East Cairo 630,000 3,290 NUCA Al Hayat Development East Cairo 357,000 3,191 Masr Al Mahrousa East Cairo 147,000 3,625 NA Al Oubor City NA 975 NA Badr NA 780 MOH NA 10th of Ramadan City NA 700 NA Sadat City NA 600 NA New Salheya NA 565 MNHD PHD East Cairo 433,642 4,693 Heliopolis SODIC East Cairo 2,750,000 3,311 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 12

13 Market Analysis Average household incomes are insufficient for home ownership Impact of EGP devaluation Play high-end property on expected surge in expat demand Exhibit 28: Property prices appear severely dislocated from average wages Monthly salary (EGP) Segment Development Developer Average price Implied property value Implied monthly payment Maximum eligibility (EGP/sqm) * EGPm/unit) to developer (**) (monthly installments) Accessibility Hadayek Al Nasr MNHD 2.3k ,500 Y 18,000 Low-income Tag Sultan MNHD 7k ,000 Y 9k Palm Parks PHD 12.5k ,000 N Allegria SODIC 33.3k ,000 N Hadayek Al Nasr MNHD 2.3k ,500 Y 32,000 Mid-income Tag Sultan MNHD 7k ,000 Y 16k Palm Parks PHD 12.5k ,000 N Allegria SODIC 33.3k ,000 N Hadayek Al Nasr MNHD 2.3k ,500 Y 60,000 High-income Tag Sultan MNHD 7k ,000 Y 30k Palm Parks PHD 12.5k ,000 Y Allegria SODIC 33.3k ,000 N 50,000 Expatriate (GCC) Southridge Emaar 3.8k , k Y *our assumed monthly wages accounts for 2 income earner/household **incl. of interest In the context of wages, we believe that residential property is now out of affordable range for the average Cairo resident, but still affordable to mid-high income expatriate residents of neighboring GCC states. A crude calculation of wage bands in Cairo suggests and average monthly salary of EGP10k-16k for a middle-income household (with 2 income earning individuals), and EGP 30k for high-income households, and EGP 9k for low-income households. Using repayment plans offered by developers such as TMG (in which interest costs are embedded into selling prices, and loan books are then sold to commercial banks), we calculate a broad indicator of affordability. Our math suggests that at current prices, property in general drains households of c.50% of their annual income, which relative to developed markets in which a mortgage approval threshold stands at 30% net of all household debt, is extremely high. This implies that property prices should not grow much further, and certainly not due to any cost-push factors such as government land auction prices. Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 13

14 Q1 13A Q2 13A Q3 13A Q4 13A Q1 14A Q2 14A Q3 14A Q4 14A Q1 15A Q2 15A Q3 15A Q4 15A Q1 16A Q2 16A Q3 16A Q1 13A Q2 13A Q3 13A Q4 13A Q1 14A Q2 14A Q3 14A Q4 14A Q1 15A Q2 15A Q3 15A Q4 15A Q1 16A Q2 16A Q3 16A Market Analysis Egypt s residential property sector New Cairo districts have experienced a surge in demand- this is a result of sprawl, migration and expatriate demand for new homes: We believe East Cairo will continue to outperform districts in the West, as pricing has diverged markedly, helped by end buyer preferences. The upward trajectory in sales volumes should begin to decelerate in 2017, now that the EGP devaluation has played out. The North Coast secondary home market has also flourished: Demand for secondary homes rebounded in 2015, evident in increased land sales liquidity in the North coast (>EGP 5bn YTD), and to a lesser degree, the Red Sea. Supply growth should remain strong in FY 16e with +28k units (+25%) in the pipeline, but decelerate in FY 17e with under +4k units (+3%) due for handover. In the context of an addressable population base of 2.5m high-income earners (of which 0.4m are expatriate residents of the GCC), the supply pipeline is relatively small. This provides some reassurance with regards to uptake levels for secondary homes. Asking prices up >20% y/y. Developers continue to operate in a market that allows >20% in selling price increases across Cairo. Stripping out inflation (10-12%), prices by our estimates have strengthened by 8-10% y/y (vs % Dubai and KSA). In USD terms, selling price growth has decelerated in Q3 16A to 10% y/y, due to EGP devaluation (- 13%), and affordability constraints. We expect the upward trend to continue to soften in the next 2 years as developers seek to pass <5-7% y/y increase in prices, given guidance. Exhibit 29: Incoming residential supply in Cairo- formal housing sector (under coverage) Exhibit 30: 6 th of October district: Apartment prices up 26% y/y, villas 8% y/y in EGP terms Exhibit 31: New Cairo: Apartment prices, in EGP terms, up 20% y/y, villas +26% y/y during Q3 16A 6th of October residential price performance New Cairo residential prices performance FY 11A FY 12A FY 13A FY 14A FY 15A FY 16e FY 17e 1,400 1,300 1,173 1,200 1,100 1, ,071 1, ,267 1,163 1,189 1, ,016 1,305 1,279 1,190 1,317 1,094 1,163 1,175 1,215 1,252 1,255 1,215 1,153 1,166 3,200 2,522 2,777 2,522 2,700 2,471 2,146 2,194 1,974 1,700 2,200 2,044 1,741 1,659 2,232 2,219 1,732 1,539 1,700 1,452 1,506 1,305 1,331 1,125 1,100 1,538 1,200 1,438 1,478 1,394 1,331 1,125 1, Units ('000) Future supply ('000) Apartments Villas Apartments Villas Source: JLL, Company Data, Arqaam Capital Research Source: JLL, Company Data, Arqaam Capital Research Source: JLL, Company Data, Arqaam Capital Research Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 14

15 Market Analysis Developer footprints: across Cairo Cairo Exhibit 32: Cairo sprawl: Residential developments are largely concentrated around urban districts in Six of October and New Cairo Porto october The Strip The Polygon Westown The Courtyards Al Rabwa Allegria Casa Forty West Uptown Cairo Nozhat Oboor, 1258 Suez Rd -Al Waha -Primera Teegan Porto Cairo Residence + mall Festival City Porto New Cairo Al Rehab -Palm Hills Katameya -Extension -Village Garden Eastown Mivida Madinaty Villete KM 45 Nasr Gardens -Palm Hills October - Palm Valley - Golf extension - Gold views -Bamboo extension - Botanica -Woodville Village Gate Kattameya Plaza + Commercial TMG SODIC PHD MNHD Emaar Misr Amer Heliopolis Landmarks Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 15

16 Market Analysis Yield analysis: No further room for pricing growth Exhibit 33: Implied yields across developer portfolios are demonstrably negative in real terms Development Developer Rental rate Selling price Implied gross Implied Implied monthly Implied net rental (EGP/month) (EGPm/unit) rental yield net rental yield mortgage payment (EGP) yield post-financing The Village Gate PHD 7.5k % 4.9% 17.8k (7.43%) Nasr Gardens MNHD 1.8k % 12.9% 1.7k 0.46% Allegria SODIC 35k % 2.5% n/a n/a Forty West SODIC 25k % 4.5% 54k (5.80%) Al Rehab TMG 6k % 3.8% 18.4k (8.72%) Madinaty TMG 8k % 2.2% 42.3k (10.56%) Mortgage penetration is near-nonexistent in Egypt: And this is due to a range of economic and social factors. Property purchases are typically achieved by a mix of long term savings, and inter-generational gifts. Much of the housing sector is informally built. A large portion of the property market shows negative implied yields, when mortgage costs are introduced: We believe that a hypothetical mortgage calculation shows that net of finance costs, most property in Egypt would produce negative yields. Eventual formalization of the sector, and increased commercial lending into residential property, would force a correction in either rental rates (via upward pressure to restore yields), or prices (via downward pressure). Exhibit 34: The total value of mortgage loans outstanding as a % of GDP remains negligible for Egypt, at 0.2% Total Value of Mortgage Loans outstanding (LC bn) GDP (LC bn) As a % of GDP Egypt 4.3 2, % UAE , % KSA 147 2, % USA 13,795 17, % UK 1,300 1, % Eurozone 5,874 10, % South Africa 1,200 3, % It will most likely appear in prices, rather than rents: Given that rental controls apply to a portion of old build residential stock in Cairo, and that rental growth roughly equates to inflation across new build (post 2013), the eventual yield correction of property in Cairo would most likely take place via prices, rather than rents. This implied that price stabilization/weakness is the more likely scenario going into Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 16

17 Market Analysis Market solutions: Land donors and home builders Land auctions prices have appreciated strongly- developers not likely to raise residential prices as aggressively in order to preserve margins (latest auction EGP 3.k/sqm, vs. EGP 2.5k/sqm SODIC max) This has produced 2 types of real estate names in Egypt: land donors (Helopolis), and builders (PHD, SODIC). MNHD has also allocated land towards co-development. JVs have emerged, and typically split the economics in favour of builders We however believe that land donors enjoy the bulk of the benefits, as they monetize assets and take on minimal execution and sales risk. Plots can be re-appropriated in the event that a JV fails, whereas WIP cannot be liquidated. We believe MNHD is very well-positioned Exhibit 35: Land donors vs. home builders: The split of project economics works in favour of builders, but land owners enjoy better RoE and margins Land donor Home builder Revenue split (%) CAPEX/unit for Margin/unit sold Margin/unit sold land donor (land donor) (home builder) (EGPm) CAPEX/unit for home builder (EGPm) Heliopolis - SODIC project Heliopolis SODIC % 40% % 25% 72% 12% MNHD - PHD: Capital Gardens MNHD* PHD % 54% % 42% 90% 32% *On a one-off basis with PHD NPM Land donor NPM home builder RoE land donor RoE home builder How we play this trend: Our calculations above demonstrate the effective split of the proceeds of existing JVs, in terms of margins and RoE. Though the allocation of revenues typically favors builders (e.g. SODIC, PHD), the effective net margin is stronger for land donors (average 66% vs. 35% builders). This also applies in terms of RoE (average 88% vs. c.20% builders). Cheap land is the primary reason. Furthermore, we believe that project execution risks and cash flow burden are substantially lower for donors, adding further arguments in favor of playing the theme through the likes of Heliopolis and MNHD. Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 17

18 Damac UPP ERC Eshraq PHD MNHD Arkan TMG Emaar Misr SODIC DIC Mabanee Aldar Emaar SRECO REIT Emaar Malls Al Mazaya Valuation Regional context: NAV analysis We still see value in MENA property: Currently, MENA property is trading at 0.7x P/NAV, largely lifted by a >40% rally in Egypt developers post the devaluation of the EGP. This is still 20% below our target P/NAV of 0.9x. In particular, UAE property (as below) currently trades below SoTP value, and in some cases (Emaar Malls, Emirates REIT), even below the DCF-backed value of rental assets. The resultant distribution yield across the 2 names is 8.5%, vs. a simulated UAE 10-yr bond yield of 4.3%- this demonstrates solid value, in our view, in the context of P/NAV discounts. As for Egyptian property names, selectivity remains key, as market re-rating has in some cases overshot (EGTS, TMG). We remain buyers of names trading below our base case NAV numbers, and see deep value in those trading below our bare bones assumptions (SODIC, MNHD). Exhibit 36: NAV scenarios: Egyptian property names trade at a c.30% discount to base case scenarios, and in some cases (SODIC and MNHD) below bare bones value 100% 50% 59% 51% 21% 25% 34% 33% 29% 20% 39% --% (22%) (14%) (16%) (14%) 16% 12% (50%) (38%) (33%) (44%) (100%) (150%) Blue skies Base case Recurring only Bare bones CMP Linear (CMP) Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 18

19 Valuation NAV analysis How we define our valuation scenarios Blue skies: Development pipelines and rental growth are modeled at 100% of management guidance. Base case: Projections are made on average at 70% of guidance (sales guidance taken at 50%). This is our chosen set of parameters for our revised projections across the sector. Bare bones: Projections capture only 3 years of visible cash flows, and projects beyond this timeline are excluded (removing both CAPEX and returns). Recurring-only: NAV is purely derived from existing recurring income assets, and assumes no growth beyond inflation in rentals. Exhibit 37: Breakdown of NAV scenarios Base case PHD TMG SODIC MNHD ERC EMFD Recurring assets (0.1) 0.3 Property development- existing Land Other assets (0.4) (1.5) Net debt 0.8 (0.2) (2.4) (0.2) NCI & JVs (0.1) NAV/share Bare bones PHD TMG SODIC MNHD ERC EMFD Recurring assets (0.1) 0.3 Property development- existing Land Other assets (0.4) (1.5) Net debt 0.8 (0.2) (2.4) (0.2) NCI & JVs (0.1) NAV/share Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 19

20 NAV/share NAV/share Valuation NAV analysis Exhibit 38: Base cases Exhibit 39: Base cases: composition of NAV/share % 3% % 80% 70% 60% 50% 40% 75% 30% 40% 45% 34% 92% 31% 65% 95% 30% MNHD SODIC TMG Emaar Misr PHD ERC 20% 10% 0% 21% 30% 21% 4% 4% 5% 5% MNHD SODIC TMG Emaar Misr PHD ERC Recurring assets Property development- existing Land Recurring assets Property development- existing Land Exhibit 40: Bare bones cases Exhibit 41: Bare bones case: composition of NAV/share % 90% 80% 33% 43% 35% 8% % 60% 77% 50% 100% 37% 61% 100% % 30% 42% MNHD SODIC TMG PHD Emaar Misr ERC 20% 10% 0% 30% 14% 4% 15% MNHD SODIC TMG PHD Emaar Misr ERC Recurring assets Property development- existing Land Recurring assets Property development- existing Land Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 20

21 Valuation Anomalies in market valuation: Implied WACC, and implied land prices Exhibit 42: Market implied WACC Developer Target WACC Market-implied WACC pps MNHD EY 21.6% 46.7% 25% OCDI EY 21.2% 35.0% 14% PHDC EY 21.1% 25.2% 4.1% Average Egypt 21.3% 35.6% 14.3% An angle through which to demonstrate the anomaly in market valuation is to infer the implied cost of capital at which the market is discounting real estate cash flows. As above, property names in Egypt are effectively being assigned an average cost of capital that is 14.3% above what we use in our models (WACC 22%, rf 15%, EMRP 9%, CMRP 3%, tax rate 23%), which we already revised upwards by c.300bps to incorporate higher rates after the devaluation of the EGP in November This would imply equity risk premiums that are 2x our assumed 9%, which we find erroneous. Exhibit 43: Market implied land prices Developer Target average land price (EGP/sqm) Target average land price (discounted) Market-implied land price (EGP/sqm) MNHD EY 3,250 1,622 1,000 (38%) OCDI EY 2,700 1,350 0 (100%) PHDC EY (56%) Average Egypt 2,195 1, (66%) Thinking in an NAV context: From another perspective (NAV), and assuming development proceeds and recurring income are being priced in correctly, the residual discount on land mark-to-market valuations is on average 66% greater than what we use in our models, which is already 50% below M2M. We again find that this is excessively punitive, especially since land monetization is far more immediate in Egypt than elsewhere in MENA. % Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 21

22 Market analysis Developer portfolios: key details Exhibit 44: MNHD development portfolio Project name Launch date Target market Total BUA (sqm) Launched units Sold units Delivered units Delivery start date Average selling price EGP/sqm Expected revenues (EGP m) CAPEX (EGP m) Hadayek Al Nasr 2011 Low 44, k 89 - Tag Sultan 2012 Upper/middle 300,300 1,700 1, k 2, Hayy Al Waha - Phase Middle 81, k Primera 2014 Middle 58, k T Zone 2015 Upper/middle 321,606 1, k 5,000 2,500 Sarai S Middle k 2,240 1,000 Total 807,445 5,959 3, k 10,015 4,536 Exhibit 45: MNHD land bank Plot Area (m sqm) Price EGP/sqm Nearby asking prices EGP/sqm Teegan 2.8 2k 4k 40% KM k 2.8k 25% Legacy land 0.1 5k Total k Footprint Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 22

23 Market Analysis Developer portfolios: key details Exhibit 46: PHD development portfolio in West Cairo Project name Launch date Type Project land area (sqm) Total BUA (sqm) Land area (sqm) Launched units Sold units Delivered Delivery start date Average BUA selling price/sqm Average land selling price/sqm Expected revenues (EGP m) CAPEX (EGP m) West Cairo Palm Hills October Golf Views Jun-05 Villa - Town/Twin House 2,049, , , k 8.4k-14.5k 4,109 1,634 Casa Jun-07 Apartments 294, ,020-1,154 1,140 1, k-8.7k 1, Palm Parks Dec-07 Apartments 474, ,788-1, k 2,419 1,146 Palm Hills October Bamboo extension Palm Hills Golf Extension Dec-07 Jan-08 Woodville 2014 Palm Valley (formerly VGO) Smart Village Residence 2015 Villa - Town/Twin House Villa - Town/Twin House Villa - Town/Twin House Villa - Town/Twin House 168,000 65,478 75, k 5.8k , , , k 7.4k-8.1k 3,948 1, , , , k-8k 7.5k-8.1k 1, , , , k 7.5k-7.9k 1, Apartments 100,000 53, k Total 4,625,038 1,982,540 1,438,153 5,284 3,792 1, k 7.5k 15,326 6,303 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 23

24 Market Analysis Developer portfolios: key details Exhibit 47: PHD development portfolio in East Cairo Project name East Cairo Palm Hills Katameya Launch date Jul-06 Type Villa - Town/Twin House Project land area (sqm) Total BUA (sqm) Land area (sqm) Launched units Sold units Delivered Delivery start date Average BUA selling price/sqm Average land selling price/sqm Expected revenues (EGP m) 928, , , ,3k 8.2k 2, The Village Nov-06 Apartments 105,151 67, k The Village Gate Jun-08 Apartments 131, , k-13k Village Gardens Katameya Palm Hills Katameya Extension Mar-09 Villa - Town/Twin House 284,794 36,173 36, CAPEX (EGP m) 5k 7k Mar-09 Apartments 202,700-1,004 1, k Apr-10 Villa - Town/Twin House 275, , , k 8.8k Palm Hills Katameya Extension 2 Sep-16 Stand Alone units ,666 70, k 9.4k-10k Village Avenue Katameya Dec-13 Apartments 34,906 28, k-9.2k Feddan - JV with NUCA Sep-16 Stand Alone units 514, , k 9k 5,877 1,439 2,100, Apartments 771,680 66,400 3, k 4k 6,603 2,597 Capital Gardens Nov-15 Apartments 433, ,273-2, k-8.5k - 5,064 1,250 Total 4,293,314 2,717,169 1,165,164 10,487 3,769 1, k 7.7k 23,857 8,069 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 24

25 Market Analysis Developer portfolios: key details Exhibit 48: PHD development portfolio in North Coast Project name Type Project land area (sqm) Total BUA (sqm) Land area (sqm) Launched units Sold units Delivered Delivery start date Average BUA selling price/sqm Average land selling price/sqm Expected revenues (EGP m) CAPEX (EGP m) North Coast Hacienda Bay Villa - Chalet - Town/Twin House 2,410, , , k-5.6k 10k 3, ,362-1,636 1,358 12k-33k - 2, Hacienda W1 Villa - Chalet - Cabin 215,024 17,709 42, k-5.6k 10k , k Hacienda W2 Villa - Chalet - Cabin 472,262 64, , k-17k 13k-25k 1, , k Total 3,098, , ,595 3,317 2,545 1, k 12k 8,574 2,480 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 25

26 Market Analysis Developer portfolios: key details Exhibit 49: PHD land bank Plot Location Area (sqm m) Price/sqm MV (EGP m) Botanica West Cairo k 3,213 Sahl Hasheesh Red Sea k 138 Galala North Coast k 657 Riyadh plot* KSA k 2,000 Total k 6,009 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 26

27 Market Analysis Developer portfolios: key details Exhibit 50: TMG development portfolio Project name Type Gross land area (sqm) Sellable BUA (sqm) Launched units Sold units BUA sold (m sqm) Average selling price/sqm Most recent price/sqm Booked revenues (EGP m) Delivered units Madinaty phase 1 2,688,000 2,831,520 20,598 Apartments Madinaty phase 2 3,135,300 3,133,423 24,030 34, k 10k 23,617 20,575 Madinaty phase 1 Villas 6,670,440 1,438,755 4,395 3, k 16.4k 12,067 1,149 Al Rehab 1 (6) 791, , Villas 1, k 16k 6,857 Al Rehab 2 1,238, ,803 1,232 30,459 Al Rehab 2 Apartments 1,654,237 1,838,145 12,732 11, k 9.3k 10,294 Al Rabwa 1+2 Villas 760, ,159 1, k 1,687 Total 16,938,398 10,179,545 64,641 51, k 11.3k 54,522 52,183 Exhibit 51: TMG rental portfolio Project name # of keys Occupancy* FY 18e revenues (EGP m) Four Seasons (Sharm EL Sheikh) % 147 Four Seasons (Nile Plaza) % 167 Four Seasons (San Stefano) % 52 Kempinski (Cairo) % 53 Four Seasons (Sharm EL Sheikh) 96 NA 54 Marsa Alam 750 NA 129 * we note that occupancy rates range between 30 and 40% at Sharm El Sheikh hotels Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 27

28 Market Analysis Developer portfolios: key details Exhibit 52: TMG land bank Plot Area (sqm) Market price/sqm Madinaty ,184, k Al Rehab 924, k Marsa Alam 3,256, k Sharm extension and golf land 957,634 30k Total 23,322,414 2k Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 28

29 Market Analysis Developer portfolios: key details Exhibit 53: SODIC development portfolio Project name Gross land area (sqm) Sellable BUA (sqm) Launched units Sold units Delivered units Delivery start date Average selling price/sqm Expected revenues (EGP m) CAPEX (EGP m) West Cairo Allegria 2,428, ,165 1,255 1,241 1, k 4,390 2,238 The Polygon 54,727 71, k 1, Forty West 40,196 39, k Forty West II 12,738 20, k The Strip 105,776 23, k Westown Residences 584, ,663 1,391 1, k 2,247 1,189 CASA - 15, k 70 NA The Courtyards 237, , k 1, WT Hub 50, Total 3,513,736 1,249,543 3,764 3,625 2, k 10,844 5,821 East Cairo Kattameya Plaza 126, , k Kattameya Plaza Commercial NA 1, k Eastown 484, ,225 1,902 1, k 4,007 1,406 Villette 629, , k 4,861 1,363 Total 1,240, ,433 3,169 2, k 9,522 3,120 North Coast Caesar 441, , k 1, Total 5,194,794 2,214,287 7,205 6,753 3, k 21,783 9,482 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 29

30 Market Analysis Developer portfolios: key details Exhibit 54: SODIC recurring income portfolio Project name GLA (sqm) Rent/sqm FY 18e revenues (EGP m) West Cairo The Polygon 18, k 33 Forty West 4, k 11 The Strip 6, k 22 Westown Retail Hub 13, k 31 Total 42, Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 30

31 Market Analysis Developer portfolios: key details Exhibit 55: SODIC land bank Plot Use Gross land area (sqm) Market price/sqm Total BUA Gross sellable BUA Gross Leasable area Gross Leasable BUA Land cost (EGP m) West Cairo Westown Residual Land Residential 229, k 161, , Westown Residual Land Retail & Commercial 138, k 70,807 61,029 2,744 9, Strip Extension Commercial 82, k 16,500 16, Polygon Commercial 10, k 18,122 9,061 7,249 9,061 2 Al Yosr Land Mixed Use 1,260, k acre Residential 126,000 2k 266 Total 1,846, , ,019 9,993 18, East Cairo Eastown Residual Land Residential 298, k 218, , Eastown Residual Land Retail & Commercial 158, k 80,544 34,115 37,143 46, Villete (301 Acre Plot) Residential 714, k 441, ,761 2,430 Villete (301 Acre Plot ) Retail & Commercial 210, k 13,431-10,745 13,431 Heliopolis land Mixed Use 2,751, k - 3,311 Total 4,133, , ,188 47,888 59,860 6,495 North Coast Caesar 70, k 21,083 21, Total 6,049, k 1,041, ,290 57,881 78,698 6,876 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 31

32 Market Analysis Developer portfolios: key details Exhibit 56: EMFD development portfolio Project name Type Use Gross land area (sqm) Sellable BUA (sqm) Launched units Sold units Delivered units Delivery start date Average selling price/sqm Expected revenues (EGP m) CAPEX (EGP m) % completion West Cairo Uptown Cairo Mixed use High end residential & retail 4,500,000 2,000,000 2,398 2, k 38,760 21,888 10% Marassi Mixed use High end residential & hotels 6,500,000 2,400,000 2,619 2,357 1, k 48,464 26,556 10% Mivida Mixed use High-end Mixed Use 3,700,000 1,800,000 4,286 3, k 22,205 13,401 20% Total 14,700,000 6,200,000 9,303 8,373 2, ,429 61,845 Exhibit 57: EMFD land bank Total land area (sqm m) Total GFA (sqm m) Residential GFA (sqm m) Retail GFA (sqm) Office GFA (sqm) Hospitality GFA (sqm) Other GFA (sqm) % launched Uptown Cairo ,000 98,000 79,000 26,000 30% Marassi , ,000 25,000 20% Mivida , ,000 10, ,000 80% Cairo Gate Total , , , ,000 Copyright 2016, Arqaam Capital Limited. All Rights Reserved. See Important Notice. 32