Sixth of October Development and Investment Company (SODIC) has inked a partnership agreement with the New Urban Communities Authority (NUCA) to build a public-private partnership (PPP) urban project over 500 acres in Sheikh Zayed, west Cairo, Invest-Gate reports.
The fully-fledged flagship, which is set to be launched within the fourth quarter of 2019, is expected to be constructed at a value of EGP 43 bn, upon which NUCA will allocate up to EGP 15.3 bn over 11 years, according to an official statement on March 21.
“The addition of this plot brings SODIC’s total undeveloped land to 7 mn square meters, from which SODIC is looking to generate over EGP 150 bn of potential future sales over the coming ten years. This puts strong visibility into our development pipeline across all our key markets,” SODIC’s Managing Director Magued Sherif was quoted as saying.
Expected to feature around 5,000 units, the new project is anticipated to generate sales of EGP 4.3 bn within eight years and is deemed SODIC’s second largest development in west Cairo.
According to the statement, NUCA’s stake consists of fixed installments worth EGP 8.8 bn, including EGP 300 mn in advance as well as 15% of annual proceeds.
“The projected payments imply a land cost per square meter of EGP 2,470 on a net present value basis discounted at 16%,” read the statement.
