Redcon Properties signs the country’s first joint factoring agreement: Real estate developer Redcon Properties has inked an EGP 925 mn syndicated factoring agreement with a number of local non-bank financial institutions, according to a statement (pdf) by Beltone Holding, which led the transaction through its subsidiary Beltone Leasing and Factoring. The agreement is the “factoring product of its kind in Egypt,” said Beltone Leasing and Factoring CEO Amir Ghannam.

The players on board: Beltone Leasing and Factoring contributed some EGP 412.5 mn, while the remaining EGP 512.5 mn came from Cairo Leasing Corporation, Enmaa Finance, Misr Finance, and Aur Leasing and Factoring. Banque Misr acted as the escrow agent.

Where will the money go? Redcon Properties will use the funds to expedite construction on its Golden Gate project in the Fifth Settlement, CEO Tarek El Gamal said.

Redcon has big expansion plans: The company is looking into setting up sustainable residential complexes on the North Coast and in the Fifth Settlement. Redcon Properties also plans to ink contracts worth some EGP 18-20 bn this year, Redcon Properties Vice Chairman Ahmed Abdallah told us last month.

What they said: "Signing the first joint factoring agreement in Egypt represents a milestone in the real estate industry,” said Abdallah. “It makes us the first real estate development company to use this non-banking financial tool to finance our projects, opening the door for its use by other companies in the future to contribute to the sustainable growth of the real estate sector.”

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