Orascom Development Egypt (ODE) has signed off on selling a 35.25% stake in its subsidiary New City Housing and Development Company (NCHD), at a total cost of EGP 128.6 mn, in line with its strategic plans to reinforce core business areas, Invest-Gate reports.

The divestment of that non-core asset will also help optimize the Egypt-based developer’s investment portfolio, as highlighted in a press release on December 14.

NHCD, formerly known as Orascom Housing Communities, namely develops housing units. Currently, ODE’s subsidiary owns a 2.6 mn-square-meter integrated project in west Cairo’s 6th of October City, featuring schools, clinics, worship houses, sports facilities, and many others to serve 40,000 residents.

That is in addition to another 800,000-square-meter development in Upper Egypt’s Qena province, encompassing a diverse range of high-quality affordable residences, the statement noted.

Last month, ODE had sealed a medium-term loan deal worth USD 265 mn (EGP 4.1 bn) to refinance outstanding debt and bankroll growth plans, according to an earlier bourse filing.

The seven-year-tenor loan carries a 2.5-year grace period to give some breathing room amid the ongoing health crisis. Accordingly, ODE would allocate USD 215 mn (EGP 3.4 bn) to finance outstanding balances, the developer confirmed back then.