Going once, going twice, sold: Banque Misr has concluded the country’s first-ever online public sector real estate auction in collaboration with auction platform Belmazad.com, selling off a number of the bank’s real estate assets, according to a statement (pdf) from the state-owned bank.

We thought that something might be in the works: Banque Misr signed a strategic partnership with Belmazad.com back in May that saw the bank make what it called a “significant” investment in the company.

Belmazad? Belmazad.com — a subsidiary of Tech Mazad — is a digital real estate auctioning platform that aims to more efficiently and transparently facilitate real estate sales, with the company having auctioned some EGP 3.5 bn worth in assets, Belmazad.com COO and co-founder Omar El Dewey told EnterpriseAM.

How did the auction work? Through Belmazad.com’s digital platform, auction participants were able to view property videos, pictures, and maps, as well as anonymously place bids, Belmazad.com said in a separate statement. The auction also leveraged Banque Misr’s resources by allowing participants to block funds on their accounts rather than send deposits via check or bank transfer, ensuring streamlined refunds and payments.

A fairer playing field: In addition to benefiting from pure anonymity, the digital event introduced safeguards to prevent sniping, with the system automatically extending the auction time if a new bid was placed in the final five minutes. The auction also saw fair prices reached without external interference, Banque Misr’s real estate investments division head Hassan Samir said.

The new venture is aligned with Egypt’s wider goals: Digital real estate auctions align with the government’s directive to promote digitization as part of Egypt’s Vision 2030 program and is consistent with Banque Misr’s commitment to building a cashless society, the bank’s statement read. The bilingual auctions are also set to promote inclusivity in public auctions, allowing foreign investors to take part in the resale of local assets, El Dewey noted.

These auctions could be used to sell more public sector assets: Banque Misr and Belmazad.com plan to jointly leverage the platform’s current system and know-how to scale digital auctioning to the national level — including potentially selling public sector assets in partnership with the government, Belmazad.com co-founder and CEO Mahmoud Farahat told EnterpriseAM.

More Egyptian banks want to get in on the action: As a primary investor in Belmazad.com, Banque Misr’s collaboration offers a blueprint for further partnerships, with Farahat noting that 90% of major Egyptian banks are looking to implement the company’s digital auctioning services.

What’s next? Banque Misr plans to add more of the bank’s own assets and third-party assets entrusted to them on the platform in the coming period, Chief Investment Officer Ahmed Sobhy noted in Banque Misr’s press release.

In the long term, the platform aims to expand in Middle Eastern and African markets, with El Dewey noting that the platform could be used for non-real estate assets in the future.

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