New Administrative Capital to Offer Lands, Finalize Agreements with Developers

Sunday, 18th September 2016

The company handling the New Administrative Capital project is set to decide on offering the first phase of investment land plots, with total areas ranging between 3,000 to 3,500 acres, reported Al Borsa.

The plots are targeted for development of mix-used projects, as well as residential, commercial, and entertainment projects.

The company estimated that revenues from the first phase of the project, which will measure 14 million square meters, will amount to EGP 30 billion, as one square meter costs approximately EGP 2,100 on average. More strategically located plots of land will cost between EGP 3,500 and EGP 4,500 per meter.

The previous phase of the project included 12,000 acres, with EGP 60 billion worth of investments. The Administrative City company was launched with a cost of EGP 6 billion, with ownership divided between the Egyptian Armed Forces and New Urban Communities Authority.

The board of directors is expected to also agree on the conditions of purchase, payment methods, and a schedule for delivery, as well as deciding on the areas of the land that will be developed through partnerships with several real estate companies.

The company is also discussing the possibility of selling the units located in the residential district within the previous phase in the project, which measures of 1,000 acres and consist of 25,000 units, with expected revenue of  EGP 20 billion.

The company has previously signed an agreement with the China State Construction Engineering Corporation (CSCEC) to develop the new governmental headquarters in the project. This is expected to include 18 ministry headquarters at a cost of $3 billion.

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