Press Release
Orascom Development Holding AG: through its largest subsidiary in Egypt, Orascom Development Egypt (ODE) signs the final contract to co-develop a 1,000 feddan (4.2 million sqm) intgerated community project in 6th of October City, West Cairo.
Altdorf, 12 December, 2018 - Orascom Development Holding (ODH), through its largest subsidiary in Egypt, Orascom Development Egypt (ODE), is pleased to announce that it has signed the final agreement with the Egyptian New Urban Communities Authority ("NUCA") to co-develop a 1,000 feddan (4.2 million sqm) integrated community project in 6th of October City, West Cairo based on a revenue sharing model, whereby NUCA is entitled to 26% of total residential sales collection for the first 8 years.
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 alongside all associated external infrastructure to the boundaries of the project.
The land is located in 6th of October City, West Cairo area and is only 10 minutes away from Sheikh Zayed area the central hub of October City and two minutes away from Mall of Egypt. The project is expected to comprise over 19,000 units with a residential built-up area (BUA) of approximately 3.2 million sqm and generating an estimated total residential sales value of c. EGP 77.0 billion over a period of eight years. The integrated community is a complete residential complex offering dwelling apartment buildings and standalone units complemented with all necessary functions for a full-scale town such as commercial, educational district, sports club, medical and leisure facilities.
NUCA is entitled to a total cash payment of EGP 11.4 billion over 8 years and a primary in-kind residential BUA of 130,000 sqm delivered in year 8 which imply a land cost per sqm of EGP 1,580 on a net present value basis. In addition to that, NUCA will be entitled to another in-kind residential BUA of 150,000 sqm divided equally in year 9 and 10.
Commenting on the signature, Khaled Bichara, CEO of Orascom Development 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."
About Orascom Development Holding (ODH):
Orascom Development Holding (ODH) is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates ten destinations; five in Egypt (El Gouna, Taba Heights, Fayoum Makadi, and Harram City), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.
Contact for Investors:
Sara El Gawahergy
Head of Investor Relations
Tel: +202 246 18961
Tel: +41 418 74 17 11
Email:ir@orascomdh.com
Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: prb@dynamicsgroup.ch
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