The redevelopment of the former NDP HQ appears to be moving forward after Prime Minister Moustafa Madbouly last week transferred to the land to two developers who, according to the chairman of the Sovereign Fund of Egypt’s tourism sub-fund, will embark on a USD 5 bn project backed by Gulf capital.

MEET THE DEVELOPERS-

Handing over the land: The PM last week directed the SFE to transfer the ownership of the land of the dissolved National Democratic Party’s headquarters to two developers, who will be in charge of redeveloping the area, according to a decision published in the Official Gazette on 16 August.

Remember: The area is set to be transformed into a hotel as part of several landmark projects to develop old buildings in central Cairo and make the area more attractive for investments. The SFE had invited private-sector investors to bid for the project in a tender in 2022 and was expected to announce the results before the end of the year. Planning Minister Hala El Said said in June that the chosen consortium would be announced within two weeks (watch, runtime: 18:32).

Enter Nilus: The SFE’s tourism sub-fund will transfer the 16.6k square-meter plot of land to Nilus Hotel and Commercial Services and Nilu s Residential Services, according to the decision.

This appears to be a JV between the SFE and Gulf investors: Both companies count two of the sub-fund’s directors — the SFE’s former chief investment officer Abdalla ElEbiary and Ihab Rizk — as well as its CEO, Amr Elhamy, on their boards. Elhamy El Zayat, chairman of the tourism sub-fund, reportedly told Al Manassa that Emirati investors hold stakes in the firms. El Zayat didn’t disclose the names of the investors nor the size of their stakes. A source at the SFE declined to comment when we reached out.

Remember: A number of Emirati companies were reported earlier this year to be in the running for the tender.

A SEVEN-FIGURE INVESTMENT-

Big money: The redevelopment plans will see around USD 5 bn invested in a 7-star, 220-meter high hotel, residential buildings, and a multi-storey garage with capacity of up to 6k cars, El Zayat told the news outlet. Most of the financing will come from outside the country, he said, without providing further details.

We’re looking at an end-2029 completion date: The company expects to have received the required permits in the coming weeks, allowing it to start work before the end of the year, El Zayat said, adding that it will take six years to complete.

FX revenues for the state: The final agreement will hand Nilus usufruct rights to the land, allowing the state to charge an annual fee in FX, in addition to receiving a portion of the revenues from the project, he said.

Tags: