Bonyan is not a property developer. Bonyan is a Real Estate Operating Company (“REOC”). We are an independent real estate investment company specialized in acquiring high-quality commercial assets that offer strong potential for primarily capital appreciation and rental yield. We typically target fully constructed assets to allow for immediate income generation.

Our expertise lies in identifying, acquiring, and optimizing real estate investments rather than engaging in construction or property development. The assets we acquire are either primary assets from developers, or in the secondary market from existing homeowners.

Traditional property developers generally operate on a "build-to-sell" model, focusing on constructing properties for immediate sale, resulting in limited exposure to long-term real estate price appreciation that is associated with asset ownership. Their sales are often off-plan units at a fixed price and over a period of time (typically between 6 to 12 years). With fluctuating construction costs, this leaves developers susceptible to margin compression throughout the life of the project. Essentially, they sell at fixed price today while construction cost is variable over the life of construction of the sold unit.

Bonyan contrastingly, does not build or develop. We buy the assets at a fixed price thus fixing our cost and hedging against any macroeconomic headwinds. Bonyan primarily operates under an "own-to-lease" model. This focuses on acquiring fully constructed and, in most cases, income-generating assets, offering distinct benefits for investors seeking stable and long-term exposure to the real estate market. This approach eliminates the significant construction and development risks associated with real estate development projects in Egypt.

The weakness that is present in the developer model is a strength in the Bonyan model. Where inflation causes margins to compress for developers, for Bonyan as an asset owner, it translates to asset appreciation, as the value of owned assets increases.

Bonyan offers a hassle-free alternative to physical property ownership, while providing the same exposure. By investing in Bonyan you hold a share of its vast portfolio of underlying assets and benefit from its institutionalized approach to real estate investing. The key benefits over direct ownership are:

1- Attractive Pricing

With a dedicated and experienced investments team, Bonyan screens the entire market for new attractive opportunities and transacts with speed and precision. Additionally, Bonyan focuses on large scale acquisitions, allowing for bargaining power in negotiations with sellers who offer wholesale discounts on purchase price per meter, thus securing attractive pricing for its shareholders.

2- Portfolio Diversification

Bonyan benefits from diversification on multiple levels; the portfolio is diversified in terms of asset type (office and retail), geographically (East and West Cairo) and finally the large number of tenants allow for revenue diversification, reducing concentration risk in the portfolio.

3- Professional Management

Bonyan has an experienced and agile investment team responsible for unlocking value and growing the portfolio, coupled with a specialized operations team that manages the assets to enhance value.

4- Flexibility

Bonyan offers flexibility for investors to adjust investment size, and enter and exit positions with ease depending on their evolving financial needs. Investors can gain exposure to a professionally curated, diversified real estate portfolio without the need for large capital outlays.

5- Depth and Liquidity of the Secondary Market

Bonyan provides a much more streamlined, transparent process for secondary trading compared to direct ownership where the owner wanting to sell the asset is responsible for finding a replacement buyer for a specific asset. Bonyan offers secondary market depth allowing for immediate liquidity providing flexibility for investors to exit their holding.

6- Capital Structure

Bonyan’s primary focus on the “Core” and “Core Plus” strategy means it targets cash flow-generating assets for immediate delivery, allowing Bonyan to take leverage at the portfolio level to further enhance returns.

Fractional ownership and Bonyan model both offer investors exposure to the attractive real estate market without the need for large capital outlays. However, there are key differences between the two models:

Depth and Liquidity of the Secondary Market

Bonyan offers distinct advantages to fractional property ownership by providing a streamlined and structured investment approach. Unlike the fractional ownership model which lacks a robust secondary market (where it is the seller’s responsibility to find a replacement buyer for a specific asset), Bonyan offers market depth and immediate liquidity, providing flexibility for investors to enter and exit positions.

Transparency

As a listed entity the company is covered by multiple specialized research houses that allows for transparency on the company valuation and its activities.

Regulated

As an EGX traded stock, Bonyan offers a regulated and highly liquid form of fractional ownership. With Bonyan you have greater flexibility to manage your investment as your financial needs develop.

Professionally managed

Bonyan alleviates the investor from the extensive market screening process needed to be able to make the optimal investment decision. Through the Bonyan, investors are buying into an existing portfolio of diversified assets, carefully curated and managed by a highly experienced investments team.

Diversification

Bonyan's diversified portfolio of high-quality commercial real estate minimizes risks associated with owning a single property. Their investment team employs a rapid market screening process, ensuring efficient and strategic investment decisions. By focusing on trophy assets in prime locations, Bonyan enables investors to access top-tier real estate without the management challenges, instead these assets are managed by seasoned professionals, attracting multinational and large local corporates as tenants, providing sustainable and consistent returns.

Pricing

Bonyan buys entire buildings, hence it is able to obtain attractive wholesale pricing from sellers in contrast with the typically smaller scale acquisition of fractional ownership.

While Bonyan currently focuses on fully constructed Grade A commercial real estate assets, our investment strategy is not confined solely to this asset class. At present, we find commercial real estate and specifically offices to offer the most attractive returns, making it a primary area of focus. However, Bonyan remains flexible and adaptive, continuously evaluating market conditions and opportunities. Should other real estate asset classes present superior return potential, we are prepared to adjust our investment strategy accordingly to maximize value for our shareholders.

The Asset Management scope is performed entirely in-house. We work to enhance and optimize the value of individual assets as well as our overall portfolio in terms of both asset acquisition portfolio management and capital structure.

The Property Management component is a mix of both in-house and outsourced. Bonyan embraces a flexible model depending on the asset and its needs. For some assets we perform the property management function of tenant management, collections, marketing and leasing functions, while for other assets the function is outsourced to an independent third party.

The Facility Management that includes cleaning, housekeeping, maintenance, health, and safety, it is mainly outsourced to an independent third party.

At Bonyan, our primary objective is delivering value to our shareholders through a strategic and methodical investment process. Our experienced team leverages in-depth market knowledge to identify and seizes the best opportunities with precision.

Our process begins with a rigorous initial screening where we assess potential investments based on key factor such as prime location, asset appeal, and minimized risk. Next, we conduct comprehensive commercial, structural, and legal due diligence to ensure assets meet the needs of high-caliber tenants.

During the execution phase, Bonyan leverages strong position, reputation, and market relationships to secure top-tier assets at competitive prices and optimal capital structure.

Post acquisition, we focus on maximizing asset performance to drive shareholder returns through increasing occupancy rates, tenant mix and continuously optimizing our portfolio through opportunistic acquisitions and strategic divestments.

There are no exit restrictions on buyers of shares. Bonyan’s investment format provides its investors with immediate liquidity to sell shares as needed which is one of the main benefits of investing in a listed investment company. Bonyan is covered by multiple independent research houses that provide valuation expectations on the underlying assets and in turn stock price. As such, an investor in Bonyan does not have the burden of selling the underlying asset to realize the investment value, as the asset value would be reflected in the share price of Bonyan.

Bonyan primarily follows an “own-to-lease” model. We are typically long-term real estate holders which is required to be able to lease to reputable tenants and benefit from asset appreciation. However, depending on the economic and strategic benefit to shareholders, Bonyan may decide to sell certain assets and adjust the portfolio asset allocation.

Real estate investing has long been the asset class of choice for wealth generation, however globally it is most prevalent in share format (i.e. paper format) as opposed to physical format. For context, as at 2023, the global real estate market was worth $13.2tn, of which $10.2tn was managed through real estate investment companies and investment funds and only $3tn through directly owned or other (Source: MSCI Real Estate Market Report).

Egypt currently has no listed real estate investment companies, which contrasts with their popularity on regional and global exchanges. For the first time in the Egyptian market, Bonyan offers real estate investments as per global best practice in the form of a Real Estate Operating Company (“REOC”), maintaining a more flexible form of real estate exposure, without the investment and operational pain points.