Misr Real Estate Assets Management is pushing ahead with a comprehensive plan to maximize the potential of one of Egypt’s largest real estate portfolios — from setting up a real estate fund to redeveloping heritage buildings in the heart of Cairo. We sat down with Maha Abdel Razek (LinkedIn), CEO of the Misr Ins. Holding subsidiary, to discuss the company's vision, strategies, and challenges. Edited excerpts from our conversation:

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EnterpriseAM: You have a massive real estate portfolio. Can you tell us a little bit about your projects?

Maha Abdel Razek: We own 525 buildings consisting of 14k residential units across 26 governorates — the second largest real estate portfolio in Egypt following the Endowments Ministry’s. The company was established in 2007 to manage real estate assets transferred over from several ins. companies, including properties owned by Misr Life Ins. Our assets are primarily concentrated in Cairo and Alexandria. In Cairo, our focus is chiefly on properties in Downtown, Zamalek, and Garden City.

While we’re not real estate developers ourselves, we own land plots that we develop through partnerships with private sector investors and developers. We are currently looking to expand our investments by pursuing new partnerships.

Our portfolio includes two notable projects — Zahraa Maadi, which is now finished, and Osoul El Haram, which is being developed in collaboration with a real estate developer and is scheduled for completion within the next two years. We also have several projects coming up in 2Q of this year. We’re studying the offers and consulting with international experts to determine the best investment strategies for these projects.

E: What strategies and projects are you focused on right now?

MA: Our current focus is on leveraging our assets to set up three- and four-star hotels, aligning with the government’s plan to transform Downtown Cairo into a tourist destination as part of historic Cairo’s redevelopment. We’re planning to transform the Hannaux building into a three-star hotel, as we’ve done with El Shams Hotel and the Longchamps Hotel in Zamalek. Our market research indicates that three-star hotels are seeing increased global demand and higher returns on investment, and those in downtown areas typically achieve higher occupancy rates.

We are developing a comprehensive zoning plan for Downtown Cairo, designating areas for administrative, hospitality, and other activities. The plan is to transform the district into an open-air museum that appeals to a wider demographic, particularly the youth.

We’re also planning to launch our first real estate fund soon to make the most of our assets. We will announce all the details once we launch.

E: What role does the company play in historic Cairo’s redevelopment plan?

MA: Most of our assets fall within the plan's scope. As part of the state's initiative, we're restoring properties to their original architectural style and implementing QR code technology for each building to provide information about its condition and history.

E: What are the key challenges faced by the company?

MA: The old rent law remains our biggest challenge, as it affects the majority of our properties despite their prime locations and economic potential. Adjusting rental values would significantly boost our performance. Three years ago, rents under the old system were increased fivefold for companies, with a 15% annual increase set to continue until 2027. However, broader amendments to the old rent law — which are still awaiting legislative approval — would give us a stronger financial push, particularly given the unauthorized use of some old-rent units.

E: How has the rise in property values following the EGP float impacted the company?

MA: We are currently reassessing our assets in light of these market changes. This assessment, which we expect to complete in April, will help us establish fair market values for our properties.

E: What are the main drivers of the company’s revenues?

MA: We were the first state-owned company to collect rent electronically through a mobile application and POS payments. This process helped last year’s revenues grow 30% y-o-y and threefold compared to 2021, with government entities expressing interest in replicating the model. We are targeting further growth this year, but the real breakthrough is anticipated in 2027 when we expect to receive old rental units from companies.

E: You signed an agreement to hold electronic auctions for company-owned units. When will the first auction take place?

MA: We expect to launch the first electronic auction this month or next month at the latest. The platform, which will widen participation, will allow bidders to participate in three-day auctions, with a designated bank account for entry deposits. If a bidder is unsuccessful, their deposit will be automatically refunded.

E: Is Egypt’s real estate market still attractive?

MA: Absolutely. Significant infrastructure investments have made Egypt an attractive real estate destination, while the size of our population fuels demand. What the market really needs is property registration, move-in-ready units, and effective marketing. These would help boost real estate exports across different regions — from beach tourism in coastal cities to cultural tourism in historical locations.

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