Egyptian developer draws American interest

Egyptian developer Palm Hills Development has drawn the interest of an investment bank in the United States. Specifically, Goldman Sachs has put an investment into the company worth a 5.5%.

It was recently announced that Goldman Sachs, arguably the largest investment bank in the world, has purchased a 5.5% stake in Palm Hills Development.

Based in Egypt, Palm Hills Development mainly works with luxury and high-end resort and real estate projects. The firm's land bank is substantial, and it is considered one of the biggest by any property firm operating in Egypt. Palm Hills' land bank, in particular, is noted for including a very broad range of property types including commercial, residential and resort.

Earlier this month Goldman Sach's announced a program worth $100 million aimed at educating 10,000 women globally about business matters. The initiative is targeting women in Asia, the Middle East and Africa. Add that to a 5.5% stake in Palm Hills Development combined with rumours indicating they may purchase as much as 10%, and it appears as though Goldman Sachs is increasing their overall investment in the region.

This investment put forth by Goldman Sachs seems to be a reversal of the investment by large firms based in the areas of the Middle East such as Dubai and Saudi Arabia. Firms from that region have notably purchased land or completed transactions and developments in Egypt as part of an overall international expansion. While Goldman Sachs may be pushing for a more involved role in the developing markets of the Middle East, firms within the Middle East are looking to expand beyond their natural borders.

The price for the 5.5% stake in Palm Hills Development was undisclosed although the shares were purchased from El Mansour and El Maghraby Investment and Development Company who are also Palm Hills' most substantial shareholder.

Very few details have been released regarding the transaction or Goldman Sach's intentions with their shares and the degree of their involvement in Palm Hills Development.

However, there seems to be a fair amount of speculation that Goldman Sachs is interested in other property investment opportunities in the region and may be currently be viewing other options.