Madinet Nasr for Housing and Development’s (MNHD) board has given the go-ahead to lease a 3,000-square-meter plot in its New Cairo compound, Sarai, to Total Egypt for 25 years, adding up to the latter’s 7,000-square-meter gas service station, Invest-Gate reports.

“This is MNHD’s first venture into a recurring income asset in Sarai … We are excited to team up with an industry leader such as Total Egypt,” CEO of MNHD Ahmed El Hitamy was quoted as saying in a bourse filing on November 4.

However, the agreement is still pending contract signing and other legal procedures, the Egypt-based company noted without disclosing the deal’s value.

“Total Egypt will build and operate a flagship service station with its anchor convenient store concept ‘Bonjour’ among other services, and MNHD will manage the adjacent commercial space,” read the statement.

MNHD earlier reported that its net profits plummeted to EGP 631 mn during the first nine months of 2019, down from EGP 869 mn in the year-ago period, the developer’s unaudited consolidated financial results showed.

The property developer attributed its weak performance to the fewer deliveries scheduled in 2019 due to a three-to-four-year gap delivery policy, together with a 3% drop in gross presales, backed by lower launches targeted for this year.