Egypt-based Palm Hills Development Company (PHDC) is planning to launch a £E600m ($87m) rights offering next month. The developer will offer additional shares to existing shareholders from 4 November until 5 December.

The funds – set to raise the company’s share capital to £E2.7bn – will be used to finance its building programme.

The rights issue will also help PHDC cover its immediate financing needs, although in the longer term, it will need more funds to address liquidity constraints. In 2011, the firm’s chairman was accused of corruption related to state land sales, which subsequently led to client cancellations and a decline in sales.

In June, PHDC had a cash balance of £E102m, land liabilities of about £E3.3bn and a total outstanding debt of about £E1bn.