Privatization of Madinat Nasr Housing and Development
Hend Mostafa:
Real Estate
December 2011
Management and Leadership
Madinat Nasr housing and development (MNHD) was founded by the Egyptian government in 1959. The company targeted middle income housing and generated revenues from selling land, as well as residential and commercial units. The company developed the majority of the Nasr City district in Cairo andwas partially privatized in 1996 without any changes in operations or management.MNHD’s large land bank encouraged Beltone Private Equity to buy a large stake in MNHD despite the fact that some of the lands had ongoing disputes. Adding to this,MNHD didn’t make any effort to get back to the lands that had disputes, which represented a great opportunity for Beltone that took the decision to buy shares in MNHD and solve the land disputes. Due to the global financial crisis that hit Egypt, the share price of the company fell dramatically, which had a huge impact onthe company.
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