KEY THEMES
TMG Holding [TMGH] saw its H1 2021 pre-sales at an all-time high of c.EGP21bn (+377% y/y) propelled up by Noor, the company’s new project which contributed some EGP15bn or 71.4% to total value. Consequently, TMGH revisited its pre-sales targets for 2021 increasing it to EGP30bn (+80% y/y). Meanwhile, TMGH's newly-developed online platform made up 6.2% or EGP1.3bn of pre-sales. Furthermore, TMGH recently announced two major deals with Rawasy, which is a joint venture between National Bank of Egypt (NBE) and Banque Misr. The first deal, sealed in May 2021, saw TMGH sell non-residential properties in Madinaty and Al Rehab to Rawasy for EGP1.7bn. TMGH has already collected the majority of cash proceeds from this deal. The second transaction was concluded in June 2021, pertaining to some non-residential assets in Madinaty currently under development, for a staggering EGP9bn. TMGH expects to record the sales gradually over the next three quarters and recognize revenues until 2023. In this vein, the company has already pocketed EGP3.5bn and will rack up the rest over three installments between 2022 and 2024. TMGH believes that the transaction proceeds are going to cover the funds needed for Noor. On another bright note, TMGH almost doubled the EBITDA from its hospitality segment to EGP32mn between January 2021 and May 2021, showing signs of startling recovery from COVID-19.