Orascom Development Holding AG; CBRE report values El Gouna Assets at USD 2.1 billion, 42 times its current book value.
Altdorf, 21 October 2018 - Orascom Development Holding (ODH) assigned CBRE Group Inc, one of the best-known international property valuators with more than 450 offices worldwide, to conduct a fair market value study for its remaining land bank and its 17 hotels with 2,654 guestrooms in El Gouna, Egypt.
CBRE's report valued the remaining 22.9 million sqm of undeveloped land in El Gouna at an aggregate market value of USD 1.82 billion, 170 times its current book value which stands at USD 10.7 million
The report also valued El Gouna's 17 hotels using a Discounted Cash Flow (DCF) method at USD 303.6 million compared to their book value of USD 39.3 million, as of 30 June 2018, 87% below the estimated market value.
Based on the Group's request, the report appraised only the remaining undeveloped land and 17 hotels in El Gouna, Egypt, and did not take into consideration any other commercial properties or buildings in the destination. In total, ODH owns 33 hotels across eight destinations with 7,113 rooms and 66.3 million of undeveloped land bank all of which are booked at cost.
CEO Khaled Bichara commented: "I am pleased with the completion and publication of this valuation report performed by CBRE. The report reiterates our earlier conviction that our Group owns many assets with substantial hidden value kept at book value in our financial statements. Moreover, we believe our assets are not adequately reflected in ODH's stock price. The 17 hotels in El Gouna alone plus the remaining land would make up more than 4.1 times the current market capitalisation, using CBRE's market value.
CBREs report executive summary can be found on ODH's website under the following link:
About Orascom Development Holding:
Orascom Development Holding (ODH) is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates ten destinations; five in Egypt (El Gouna, Taba Heights, Fayoum Makadi, and Harram City), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.
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