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Officials of Sodic and Heliopolis Housing at the signing ceremony.

Sodic, Heliopolis to develop big Egypt project

CAIRO, March 5, 2016

Sodic, one of the region’s leading real estate groups, has signed a deal with Heliopolis Housing to jointly develop a major mixed-use project on 655 acres of land in New Heliopolis area of Egypt.

Strategically located in East Cairo, the land is directly adjacent to Al Shorouk city and is in close proximity to Cairo’s new administrative capital and a few minutes’ drive from the capital’s new regional ring road.

Planned for a fully integrated project including residential, retail, medical, education and sports facilities, the project is expected to create over 40,000 direct and indirect jobs over the course of its development.

The project, which is set to be developed over 10 years, will boast more than 8,600 residential units in addition to the retail and commercial offering and a dedicated sports club.

The signing ceremony was attended by Ashraf Salman, Minister of Investment along with Sodic officials including its chairman Dr Hani Sarei El Din and managing director Magued Sherif besides Mahmoud Fathy Hegazy, head of Holding Company for Construction and Hany El Deeb, the chairman and managing director of Heliopolis Housing.

As per the agreement, Sodic will get 70 per cent of the residential units' revenues while Heliopolis Housing will be entitled to the remaining 30 per cent.

Furthermore, Sodic will be entitled to 69.8 per cent of the commercial/retail revenues while Heliopolis Housing will be entitled to the remaining 30.2 per cent, it added.  

The minimum guaranteed revenues are estimated at E£5.01 billion ($638 million) to be paid over unequal annual installments, while the project's total revenues are estimated to be E£30.35 billion ($3.86 billion).

Commenting on the deal, Sherif said: "We are very excited to partner with Heliopolis Housing and to start developing this project. This is the beginning of an aggressive growth strategy for us and we look forward to growing our land bank further."

Sodic had participated in Heliopolis Housing’s last auction as part of its strategy to increase its land bank and pursue new opportunities for growth. The co-development contract marks its first revenue sharing venture.-TradeArabia News Service




Tags: Egypt | Cairo | Sodic | residential |

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