Sixth of October Development and Investment Company (SODIC) has received the official award letter for a 500-acre land plot allocated by the New Urban Communities Authority (NUCA), Invest-Gate reports

Expected to offer over 5000 residential units, the project is located in the Sheikh Zayed Extension area, a 10-minute drive from SODIC’s flagship mixed-use community in West Cairo, SODIC West.

Under the deal, NUCA will pay total payments of EGP 14.2 bn over 11 years, of which EGP 8.5 billion are fixed installments, in addition to 15% of the annual collections.

The projected payments imply a land cost of EGP 2,300 per square meter on a net present value basis discounted at 16%.

SODIC’s Managing Director Magued Sherif said “The addition of these 500 acres brings our undeveloped land bank to eight million square meters, giving SODIC a runway of at least ten years of development. The addition comes timely as we have almost completely developed our 1,500 acre flagship development SODIC West, now a vibrant community home to over 22,000 residents”.

The plot was offered on a partnership basis in a large land offering of 6,000 acres by NUCA, in which SODIC participated in December 2017.