Madinet Nasr for Holding and Development (MNHD) is seeking an EGP 2 bn loan through a banking alliance to implement various projects in the upcoming period, according to Ahmed El Hitamy Managing Director of the company, in an interview with Daily News Egypt.

The projects include commercial and touristic projects across the country, he added, noting that the flagship Sarai project located in New Cairo has a total investment cost of EGP 900 mn for its first phase. The project has already sold all its completed units, resulting in total revenues of EGP 815 mn from the units.

MNHD plans to finance the remainder of the Sarai compound and its other projects, including Tag City, through the EGP 2 bn loan, which it plans to repay over eight years. Approximately EGP 900 mn will be allocated to Sarai, which is scheduled to be completed in four years, while EGP 600 mn will be allocated to Tag City.

MNHD is also set to launch a new phase in Tag City called K-Zone in early 2017. The cost of land per meter square in the project ranges from EGP 11,000 to EGP 12,000, El Hitamy added.

El Hitamy further stated that the Sarai project is currently facing major challenges, including competition from developers who are building projects in the same area such as Al Ahly for Real Estate Development and ARDIC for Real Estate Development.