In case you needed another reminder that the real estate and construction sectors are gearing up for a busy few years to come, the new capital is set to kick off work on its second phase next year, another Egyptian real estate giant gets ready to begin developments in the GCC, and foreign capital seems increasingly eager on getting a piece of the action.

PHASE TWO OF NAC TO KICK OFF NEXT YEAR-

Pulse check on phase two of the new capital: The Administrative Capital for Urban Development (ACUD) will start construction on the second phase of the new administrative capital (NAC) early next year at a cost of EGP 240 bn (c. USD 4.8 bn), ACUD head Khaled Abbas told Asharq Business.

This is later than expected, but also cheaper: Abbas said in 2023 that ACUD plans to kick off construction on the second phase in 2Q 2024 or 3Q at the latest. Abbas also originally said that the second phase would cost over EGP 300 bn — a 25% higher estimate than is now being touted by Abbas — on the back of rising costs.

ACUD has already had a productive 2024: Since the start of the year, ACUD has landed five new partnerships worth a combined EGP 180-200 bn and has approved ten bids for land worth a combined EGP 1.25 bn, Abbas added.

And there’s plenty more in the pipeline for 2024: The company is looking to raise at leastEGP 150 bn when it offers 5-10% of its shares on the EGX in 2Q 2024, in what could be the country’s largest ever IPO. The military currently owns 51% of ACUD and the Housing Ministry holds the remaining 49%.

A smart capital? ACUD signed a shareholders’ agreement with French IT giant Atos to set up a joint venture to manage and operate smart tech services in the new capital, according to a CIT Ministry statement announcing the opening of Atos’ global delivery center in Egypt.

TMG GROUP TO START SAUDI EXPANSION NEXT MONTH-

TMG’s first foray into Saudi Arabia will soon be off the ground: Talaat Moustafa Group (TMG) will kick off construction on its Benan City project in Riyadh mid-April, CEO Hisham Talaat Moustafa told Asharq Business, explaining that construction is expected to take around eight years to complete The final agreement (pdf) for the land purchase was inked last week.

Cost estimates are up: Moustafa told the outlet that the project would be set up with investments exceeding SAR 65 bn (c. USD 17.3 bn) — 63% above an initial price estimate of SAR 40 bn (c. USD 10.7 bn) when the project was first announced in September in a TMG statement.

Benan City? The smart city is being developed in eastern Riyadh’s Al Fursan in partnership with the Saudi National Housing Company. It will house around 27.8k residential units, along with a sports club and health, educational, and commercial services. The project marks the Egyptian real estate giant’s first overseas project.

NEW HELIOPOLIS SEES INTEREST FROM INT’L DEVELOPERS-

Heliopolis Housing and Development (HHD) has received four bids to develop New Heliopolis, including an unnamed UK firm that wants to build an outlet mall for commercial brands, CEO Sameh El Sayed told Asharq Business, without providing any further details.

We know Madinet Masr is interested: The real estate developer has submitted an offer to develop three land plots with a total area of 580 feddans in New Heliopolis.

As for its other projects: HHD is in the final stages of inking an agreement with a German hospitality firm to develop Cairo’s Granada complex, and has received an offer from an unnamed firm to develop the Merryland Park, El Sayed added.

More free floating HHD shares? HHD majority owner Holding Company for Construction and Development will not offload another stake in HHD — be it on the EGX to a strategic investor — prior to developing the real estate developer and upping its market value, the holding company’s executive managing director Hani Soliman told Al Borsa.

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