Orascom Development Egypt (ODE) has signed the final agreement with the New Urban Communities Authority (NUCA) to co-develop a 1,000- acre integrated community project in 6th of October City, west Cairo based on a revenue-sharing model, Invest-Gate reports.
Under the deal, NUCA is entitled to 26% of total residential sales for the first eight years, according to a company’s official press release.
ODE said, “Through this agreement, ODE will be responsible for all construction, development, internal infrastructure, marketing, and sales activities. While NUCA will be contributing with the land adjacent all associated external infrastructure to the boundaries of the project.”
The project is only ten minutes away from Sheikh Zayed area, the central hub of6th of October City, and two minutes away from Mall of Egypt.
It is expected to boast more than 19,000 units, to be developed over a residential built-up area (BUA) of approximately 3.2 mn square meters, with expectations to generate an estimated total residential sales value of nearly EGP 77 bn over eight years.
The project will offer dwelling apartment buildings and standalone units complemented with all necessary functions for a full-scale town such as educational district, sports club, as well as commercial, medical, and leisure facilities.
NUCA is entitled to a total cash payment of EGP 11.4 bn over eight years and a primary in-kind residential built-up area (BUA) of 130,000 square meters, to be delivered in year eight, with a land cost per square meters of EGP 1,580 on a net present value basis.
The authority will be enticed to another in-kind residential BUA of 150,000 square meters divided equally in years nine and ten.
Commenting on the deal, CEO of ODE Khaled Bichara said, “This is a milestone for the Group to witness its first foray in the first home market in Egypt. We are very happy that we were able to successfully execute on our strategy that we have communicated in 2016. I am pleased to say that the level of customer interest and demand has been very positive exceeding our expectations.”
