Thursday 9 July 2020

New partnership will offer long-term and competitive mortgages

Three top Egypt firms set up mortgage finance JV

Egypt, April 18, 2019

TMG, GB Capital and EFG Hermes finance, three of Egypt’s publicly traded companies, have entered into an agreement to create a mortgage finance joint venture.
The new partnership will offer long-term and competitive mortgages for new move-in homes, increasing affordability and supply to better serve Egypt’s growing population of homebuyers, said a statement. 
The joint venture, whose brand name will be revealed at a later date, will have an initial paid-in capital of $8.69 million (Egyptian £150 million) and is expected to be increased to $14.460 million (Egypt £250 million) as the business grows. It will offer mortgage finance to all consumers looking to buy move-in homes across TMG’s existing projects and potential developments. The partners will appoint a chief executive officer to lead the new venture, which will be staffed by an independent management team. 
The joint venture, which is targeting to fund a portfolio of units worth EGP 450 million in its first 12 months of operations, will offer unrivalled mortgage solutions with the fastest turnaround time over 10-year tenures available to Egyptian clients at competitive interest rates in the market. It will also introduce new, variable-rate financing solutions. 
Hisham Taalat Moustafa, 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. Our aim is to bring to the market real estate units with long-term and competitive financing solutions that would increase affordability and better align housing supply with Egypt’s large, growing population of homebuyers. I am particularly pleased to note that the joint venture will be offering finance solutions for move-in new homes in the existing projects as well as potential developments in TMG’s pipeline. EFG Hermes and GB Capital are longstanding partners with whom we look forward to doing business for years to come.”
Dr Raouf Ghabbour, chairman and CEO of GB Auto, added: “We know that several years of high inflation have eroded consumer purchasing power. And as Egyptians, we also know homeownership remains a cornerstone of society. We are bringing to the market a portfolio of easy-to-access financing solutions that will feature the fastest decision-making time in the industry.”–TradeArabia News Service


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