Saturday, August 09, 2008

Morgan Stanley report positive about MENA property sector

Morgan Stanley, in their coverage on twelve property stocks in MENA region (Middle East and North Africa), has identified Emaar, Aldar, Qatar Real Estate and Palm Hills, as top pick for investors seeking to take advantage of the thriving real estate sector in the region.

Mai Attia, a Morgan Stanley analyst, in her report, titled "Winners and Losers in MENA Property", indicated a positive note on MENA property market, and said that a growth, driven by Qatar and Abu Dhabi, is likely to happen, with the market remaining undersupplied until 2012.

The report states that for the first time, a proper assessment of the Net Asset Value (NAV) has been considered in the region for pricing of property stocks. Till date, the analysts had set price targets for property companies at 100 percent of Discount Cash Flow (DCF), which is not so accurate, when compared to the NAV approach while pricing property stocks.

The report said that the main beneficiaries in the booming property market in the region will be Emaar, which will benefit from the high growth and low risk of its diversified business model, followed by Aldar, the pioneer in Abu Dhabi market, which will benefit from escalation in property prices and increase in demands. The Qatar Real Estate, a leader in booming industrial property segment in Qatar, and Palm Hills, an Egyptian company, which has diversified landbank, high profitability, partnerships and exposure to the Saudi market.

Morgan Stanley is a leading global financial services company, offering services in investment banking, investment management, securities and wealth management services.

The employees serve clients worldwide including governments, corporations, individuals and institutions from about 600 offices in 32 countries.

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