M&A WATCH- Compass completes acquisition of 100% of Qalaa’s Designopolis: Sky Realty Holding Ltd, a subsidiary of Compass Investment, acquired 100% of Qalaa’s Bonyan for Development and Trade, Compass and Qalaa said in a statement issued yesterday (pdf). Bonyan is the owner of the Designopolis mall in Sheikh Zayed. “Proceeds from the transaction will be allocated to deleveraging at the holding and subsidiary levels,” said Qalaa Holdings Managing Director Hisham El Khazindar.

What was the ticket size? Net equity proceeds payable to Qalaa Holdings for the sale were EGP 162 mn, the statement said, but Compass has also settled “bank liabilities and assumed liabilities to third parties amounting to c. EGP 340 million and acquired the principle of the MENA Home Furnishings shareholder loan to Bonyan, amounting to c. EGP 272 million, for an undisclosed amount.”

What’s next for Designopolis? “The asset we are acquiring is an award-winning development offering significant growth and revenue-generating opportunities given its location in the heart of Sheikh Zayed. The city’s increasingly affluent and growing community, coupled with the rising demand for outdoor activities and quality entertainment facilities, make it a unique investment opportunity,” said Compass Investment Chairman Shamel Aboul Fadl.

Advisors: Compass Capital acted as buy-side advisor while TMS Law Firm served as legal counsel for the buyer.