Palm Hills Developments and Madinet Nasr for Housing & Development (MNHD) have agreed to develop two pieces of land totalling 103,250 acres (433,643sqm), according to a statement to Daily News Egypt.
The agreement was reached through a Memorandum of Understanding (MoU), signed last week.
A source at Palm Hills Developments said the company will finance the real estate project, which is planned to be held through partnership over the two pieces of land. The land will be owned by the MNHD through the capital increase in progress, with a value of EGP 1.648bn.
The project will be executed on the land on a total of 5.5m sqm in the area of 45km on the Cairo-Suez Desert Road, near the new administrative capital.
Palm Hills will handle designing the detailed outline of the project site, as well as the design, marketing, execution, financing and unit delivery work. This will see that 64% of revenues will be distributed to Palm Hills, and 36% to the MNHD.
The MoU clarified that the project is expected to start being executed before the end of 2015. During the next months, the general plan, designed by Architect Shehab A. Mazhar, Managing Director, will be worked on, in addition to issuing the ministerial decree to launch the project, and signing the partnership contract with the MNHD.
The source confirmed that the importance of the project comes from it being the first step of Palm Hills in East Cairo. It would also be a beginning to new business nearby the new administrative capital. Moreover, the cost of the project will not be huge, considering that the MNHD would pay for the land and repay its value through revenue shares.
The MoU, upon which the partnership detailed contract will be signed, includes the general terms of expenditure. The MNHD will participate in planning and executing the major facilities networks, after preparing the general plan of the land.
The statement expected the project to achieve revenues ranging from EGP 4.6bn and EGP 5.5bn. It includes residential buildings with floors ranging from ground to 3 floors and ground to five floors, with total area of 484,100sqm. The development works would be done over four phases to be done through nine to ten years. Units of the first phase would be delivered over the four years of beginning of the project.