Palm Hills' strategy is comprised of four pillars, namely Growth, Earnings Stabilization & Diversification, Improving Profitability and Expediting Projects' Delivery. Through the "Growth" pillar, the Company is exploring new large land banks within its development regions being West Cairo, East Cairo and North Coast to further expand its current development portfolio either through direct land auctions sponsored by the Egyptian Government, acquisitions from the private sector or co-development opportunities with land lords, securing the Company's future pipeline of residential and commercial offerings.
To enhance the "Earnings Stabilization & Diversification" pillar, the company has set-up Palm Hills Investments ("PHI") during 2015 with the purpose of deploying existing raw land that have been allocated as investment property and commercial real estate throughout completed developments and projects under development. Palm Hills has allocated c.337,000 sqm as a starting point for commercial projects. The Company is targeting developments in the following segments: neighborhood and community malls, office buildings, leisure facilities, health & education, and selective hotel properties.
With regards to "Improving Profitability" pillar, having recently revisited its future development plans, Palm Hills is currently exiting untapped real estate investments and unutilized land plots that are no longer fit within the future development program, while at the same manner increasing land bank and enhancing cash flows in existing projects.
Within the "Expediting Projects Delivery" pillar, the Company is continuing its accelerated construction program to speed up delivery which commenced in 2014 and is targeting to complete all projects under development by end of 2017.