Egyptian developer Misr Italia has bought a 840,167-sq-m plot of land in the country’s new capital city for E£2.06 billion ($113.8 million) to develop a fully-integrated urban project over the next five years, said a report.

Egypt had in March 2015 announced plans to build a new city, 45 km east of capital Cairo, during a summit at Sharm Al Sheikh which was held to attract foreign investors who had pulled back from the country after the 2011 revolt against the government, reported Amwal Alghad.

Misr Italia's investment is timely as the new capital project appeared to have stalled after the primary developer, a UAE company, pulled out and a contract to develop government facilities by a Chinese state developer also fell through, stated the report.

The Egyptian developer has already paid E£310 million ($20 million) for the plot of land, said the report citing its top official.

"Misr Italia’s project comes in line with the Egyptian government’s plans to make urban expansions into East Cairo area," remarked its chief executive Mohamed El Assal.

"We are keen on launching more real estate projects to revive the sector, through boosting the national production," he added.