The Administrative Capital for Urban Development (ACUD) delivered lands for approximately 16 banks in business district out of 30 banks, according to the ACUD spokesperson Khaled El Hosseini.
El Hosseini said that 27 companies has received their lands in mixed use are (MU23) at the capital for commercial, administrative, educational, and residential activities.
Daily News Egypt sat down for an interview with El Hosseini to talk about the development of work in the New Administrative Capital and lands delivery. The transcript for which is below, lightly edited for clarity:
Can concern take place regarding recurrence of withdraw of other companies like Novus Stanza Properties?
Logically, this is not supposed to happen, the company’s withdrawal based on its decision and I think this will not be repeated. The ACUD forced Novus Stanza to announce its withdrawal from the project. The ACUD has its conditions to ensure implementation on a specific date with specific financial, technical, and time requirements. When contracting with any company, it is important that there be specific time requirements to ensure that the land is not been hold off for reselling at higher price and also puts strict construction requirements are required by the developer to build an integrated urban community other than what was previously built in Egypt. Besides, putting financial requirements and conditions to guarantee the right of the ACUD in receiving the value of the land.
The company paid the down payment of land value less than EGP100m. All allocated to the Novus Stanza was 29 feddans, and for one reason or another, it decided not to continue the project.
On 15 August, board of directors of the ACUD approved the cancellation of the contract and refund of the payments paid by the company to the ACUD, but oblige it to pay administrative fees to the ACUD. And this was after committing them to make announcements to announce its withdrawal, as much as the announcements announcing the project and the refund of the clients’ money and correspondence from the company proves that there are no obligations or no loans at the expense of the project and also guaranteed the company refund of customers’ money.
Novus Stanza is the only company that has withdrawn, and I do not expect any further withdrawals. Therefore, because our procedures are specific and strict, we guarantee financial solvency of developed companies in the administrative capital and their legal position even if these companies are new and, in its inception, even if, they were set up to implement projects in the administrative capital. We are happy to provide support to companies even if they are new.
What possibilities of competition to take place at capital, for instance like El Mostakbal City for developers?
The ACUD is required to develop the project as soon as possible with a distinct final product. The land is available to every developer who has the financial solvency and ability to execute.
The capital is a new urban community with a fastpaced infrastructure and a smart, safe city with sustainable and environmentally friendly synonym with traffic liquidity, as well as sensors for air pollution. We are going to develop a green river, an unprecedented green space in other cities. The New Administrative Capital is out of the competition.
Amount of infrastructure spending?
EGP 130bn were allocated for the development of infrastructure for the first phase of the administrative capital.
How many companies have applied for service, commercial projects in capital?
Our MU23 is a mixeduse area and is dedicated in diverse activities on an area of about 400 feddans.
Nine companies have applied for nine plots of land in the MU23 area to set up commercial and administrative activities, including Elsewedy Electric and received plot H2 on 27 May. Ceramic El Jawhara Company El Ezz for Ceramic and Porcelain received plot G12 on 6 May. Constructa Group received plot G5 on 6 May. Capriole Construction Company received plot F13 on 15 May 2018, and a memorandum on rock heights is being made.
Castle Development Group received plot H1 on 22 May, and on 21 May, Badri Fakhri Luca company received a plot of land number G11 in the MU23 area.
Misr Alhurra Real Estate also received plot H3 dated 21 May, in addition to Technology company for Real Estate Investment received plot D1 on 20 May. However, the delivery of the plot C4 for the sake of Askr General Contracting company was postponed until the amendment of the name.
Furthermore, six plots of land were allocated in mixeduse area MU23 for six companies, namely Al Sharq Group, which acquired a plot of land number G15 on 1 July. Al Wgahaa Real Estate Investment company received land plot number H8 on 24 May, Misr Elsalam for Development and Advanced Technology received Plot of land G2 on 29May. Aswellasthe acquisition of the Capital for Construction And Investment company on the plot of land number B1 on 29 May and Global Pioneers Real Estate Investment got piece A10, while the postponement of the acquisition of Umraniya for Urban Development company on land plot number A3
until the name is modified.In terms of administrative use, four companies submitted requests for acquiring four plots of land to establish administrative activities in the MU23 area, the Egypt Gas Company, which acquired a plot of land number D8 and the land is being delivered. Giza and Cairo Real Estate Development company also received a plot of land D10 on 2 July, and Petrotrade company, which acquired a plot of land D9 on 27 May. The Egyptian Pharaonic Company for Software and Research Service submitted request to acquire a plot of land number E6, but has not been delivered because of the presence of occupants of the ground and our company follow-up evacuation position.
How many schools, international universities planned in capital?
Eight plots of land were allocated for the establishment of international schools in the MU23 area for a number of companies, namely, Sephora for Management, Operation, and Establishment of Educational Schools, which received on 15 April, plot of land number F3, and the American English Company for Educational Services received on 8 April, plot number F8. The New Capital for Schools Construction received plots of land number G9, G8, on 3 May, and Alrowad for Science and Technology has got a plot of land number H11 on 5 May. In addition to the delivery of plot number D3 for Al Farabi Educational company (Glory American Schools) on 24 June. Besides, the allocation of plot of land number E1 for the benefit of Al-Ma’arifa
International Private School and has not been delivered so far because of the occupations, and is handing over plot of land number H10 in favour of ERIC – Seven Pillars of Support for Inclusive Education company.
At the level of international universities in the administrative capital, we have seven universities that include Egyptian investors in partnership with foreign investors in the first phase of the project. One of the most prominent companies investing in this sector is Canwell Consulting Group Limited for the establishment of a Canadian University on an area of 27.67 feddans, as well as the European University in Egypt on an area of 67.32 feddans and Elsewedy Electric Group for the establishment of the British University on an area of 42.89 feddans. In addition to, the establishment of the International Capital University (formerly Sinai University) on an area of 49.77 feddans, furthermore, allocating an area of about 30 feddans for Modern Education Services company to establish the Hungarian University in the administrative capital. Moreover, the allocation of about 50 feddans of which 43 feddans of land ownership for Landmark Properties for the establishment of the American University and the name of the university is being changed to Global Campus.
How many banks have applied for land in capital?
Thirty banks applied for acquiring plots of land in the administrative capital, about 16 banks have received the lands.
Which companies have applied for land in retail or commercial activities?
Majid Al Futtaim is one of the first companies applied for acquiring land for retail activity and Emaar, but we are still in negotiations with Alabbar and also with Talaat Moustafa Group.
How many companies have obtained ministerial approval?
The ministerial approval was obtained by eight companies, namely Misr Italia Properties, which acquired one ministerial approval and three ministerial approvals for Amoun for Real Estate and Tourism Development company. Besides, Teparuz for accommodation of air defence officers acquired a ministerial approval, Talaat Moustaf Group received an approval, moreover, Arabian Company for Projects, and Urban Development received a ministerial approval. Furthermore, Saudi Egyptian Construction Company-SECON received a ministerial approval and one for Safwa Urban Development.
Nevertheless, ministerial approvals are being issued for both Global Campus and the European University.
Any difference detected in implementation of masterplan for project?
We are committed to the project’s master plan and development timeline, but are open to all housing projects, whether residential or commercial. If a project emerges, it will be included as long as it has an economic feasibility.
What latest developments in government, business, embassies districts took place?
The government district will be completed by the middle of 2019 and the infrastructure is being completed, the infrastructure of business, and banks district is being completed and banks and companies have paid down payments.
With regard to embassy districts, we received about 40 requests from embassies to move, as well as areas of land required according to the size of the trade mission.
How many companies received land, what position of delivery in first, second phases?
Namely, 15 companies received companies in the residential district in the first phase of the project. Six universities has received their lands. Besides, 12 schools were acquired on land with the first offering in the second residential neighbourhood R2. Sixteen banks received lands
in business districts in the capital. As well as 30 companies received plots of land in residential neighbourhood R7 of the first offering phase, and also 10 schools received lands in the same district.
The company has sold the entire first phase of the project of 1,700 feddans and also the second offering phase of 2,500 feddans. Notably, 30% of the total area of each phase are being allocated for street and basic services and the rest of the area is developed through developers and companies.
The R8 neighbourhood of the third phase of the project is on an area of 2,469 feddans, which consists of 52 plots of land with two precedents, each with 26 plots of land, in addition to a waiting list of 18 companies deferred from the first offering. They have a priority in R8 with the third offering, but will be sold at the prices of the second offering until 1 August.
The fourth land offering will be announced after completing selling of the second and third offering.
Can you state position of pricing in new offering, percentage increase in land prices?
Land pricing has been completed, but I expect the increase in the new offering to be 10% to 30% increase.
What latest developments in industrial activities in present time?
The company is keen to establish industries that are not polluting the environment, and negotiations are still underway with CFLD for the development of the infrastructure of the industrial zones.
The first phase will ensure only residential, commercial, and administrative activities, but industrial activities will not be included in that phase. The ACUD is open to any industrial investment that is not polluted by the environment.
In October 2016, Ministries of Housing and Investment signed a framework agreement with the China Fortune Land Development (CFLD) to develop 60 sqkm of the New Administrative Capital with investments of $20bn.
The project consists of three phases, the first being the development of the master plan and the development of an area of 10 sqkm and ending in June 2018 with foreign direct investment of $5bn. The second phase involves the development of an additional area of 20 sqkm to be completed in June 2020, which will attract foreign direct investment of $10bn.