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Saudi real estate investor Sumou Holding is in preliminary discussions to acquire Midar Investment and Urban Development, a government source told EnterpriseAM. The potential acquisition of the state-affiliated developer behind Mostakbal City could reportedly be worth USD 3.5 bn, Al Arabiya reports, citing an unnamed source.
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Midar? The developer, whose backers include state-backed heavyweights Banque Misr, the National Bank of Egypt, the National Investment Bank, and Arab Contractors, is behind two major urban projects east of Cairo, Mostakbal City and Mada City, spanning a combined 11k feddans near the new capital.
Sumou is no stranger to Egypt — or Midar for that matter. It was announced just last month that Midar and Sumou Holding, via its subsidiary Adeer International, are part of a consortium looking into setting up a USD 1 bn Downtown Cairo redevelopment project. The same consortium is also working on hospitality and leisure projects along the Nile in Cairo and in Midar-developed new cities with investments of USD 2 bn, while the two companies are also partnering on a EGP 70 bn mixed-use project in Mostakbal City.
Sumou is also looking to set up itsfirst real estate fund in Egypt and funnel SAR 2 bn intothe local real estatemarket over the next five years.
Unconfirmed reports out just yesterday also claim the two will invest USD 2 bn in six Downtown Cairo hotels as part of a wider consortium, with an official announcement and finalized details expected within a month, once legal procedures and land allocation are completed, Mubasher reports, citing an unnamed source.
The consortium is negotiating for land and assets for the project that are owned by the state, making it more than likely that the project is part of the Sovereign Fund of Egypt’s plans to offer up Downtown assets — including the Ministries Square area — to private investment. The fund’s plans are part of the government assets privatization and redevelopment, which follows the government’s relocation to the new capital.
