18 September 2018 — Compass, a leading value investment firm, has announced today that portfolio company Bonyan for Development and Trade (Bonyan) has successfully increased its capital from EGP 274,780,000 to EGP 654,000,000 which has been previously approved by the General Authority for Investment and Free Zones (GAFI).
Minister of Investment and International Cooperation Dr. Sahar Nasr met today with Shamel Aboul Fadl, Chairman of Compass among other members from the investors community where she affirmed that the ministry is constantly working on developing services in the investors services center to facilitate investment which contributes to the establishments of new companies and the current companies to expand their investments and increase their capital.
Bonyan, a specialty real estate developer operating in Egypt, is the owner of the award-winning Designopolis mall. Originally developed as a specialty furniture mall, Designopolis is an open-air asset designed by renowned architectural firm Skidmore, Owings and Merrill built on a 117,000 square meter plot of land located in West Cairo in the Sheikh Zayed area. Compass will re-purpose the 1 km long promenade of some 300 shops into a complete lifestyle destination that includes shopping, dining, office space and entertainment activities for the entire family.
“Bonyan’s capital increase is the first step toward delivering on our previously communicated growth plans for the company at the time of acquisition,” said Compass Founder and Chairman Shamel Aboul Fadl. “Our aim is to equip Bonyan with the necessary tools to transform the asset into an operational lifestyle destination within a year, including bringing on a capable management team, defining clear growth strategies and building an efficient capital structure.”
The capital increase was fully subscribed by Sky Realty Holding Limited, a subsidiary of Compass, which owns 99.9% of Bonyan. In July of this year, Compass completed the purchase of 100% of Bonyan from Qalaa Holdings subsidiary MENA Home Furnishings to Compass.
Compass derives value from portfolio companies largely through the retention of industry veterans, streamlining operations, improving business models, and strengthening financial positions.
“We look forward to bringing our first commercial real estate project online and start generating returns to our investors. In parallel, we are actively building a platform from which to launch additional investments in the sector at this opportune moment in Egypt’s economic recovery,” Aboul Fadl added.
Compass Capital is a leading private equity firm focusing on value investing. The firm’s multi-disciplinary team focuses on transactions requiring capital flexibility, financial restructuring, and operational turnaround. Compass follows a disciplined investment approach that hinges on defining strategic initiatives, agile implementation of strategy, supporting talented management, and providing required growth capital to drive growth. The company is a principal investor in its own transactions and actively works to ensure that the interests of all stakeholders are aligned in the investments it pursues.