The Sovereign Fund of Egypt (TSFE) has started the first executive steps to develop the Tahrir Complex by completing the information note and presenting it to foreign and local investors and developers.
The fund aims to attract international developers and partners, and use all creative ideas by investors specialising in the rehabilitation and use of existing assets.
This represents the idea put forward for the Tahrir Complex as a distinguished historical asset in central Cairo, with the aim of creating value added for the state’s assets to make continuous returns for future generations.
Hala El-Said, Minister of Planning and Economic Development and TSFE Chairperson, said in a statement that the process of providing the offering note for the development of Tahrir Complex comes at a convenient time.
It follows the great success of the Royal Mummies Parade between the Egyptian Museum in Tahrir Square and the National Museum of Egyptian Civilization (NMEC), passing by the Tahrir Complex. This step coincides with the completion of the full evacuation of the complex.
El-Said stressed that the development of the Tahrir Complex comes as part of TSFE’s core and strategy. It works to develop assets and maximise their returns, whilst preserving the rights of future generations of Egypt’s wealth according to the latest scientific methods of investment to utilise untapped assets. The Tahrir Complex will be a model of the way the fund handles assets.
El-Said added that a number of major Egyptian, Arab, and international companies are expected to participate in the development process, and a trade-off will be made between them transparently.
The most appropriate choice for a partner will be used while encouraging other investors to enter into future partnerships with the TSFE.
Fund CEO Ayman Soliman said that the TSFE management has managed to reach an appropriate partnership after completing the financial studies, in which specialised consulting firms participated.
He stressed that the partnership model will be based on the TSFE’s contribution to the asset, represented in the complex, technical studies, and surveys.
The partner or real estate developer will contribute with financing and other development components. The qualification process will be based on developing the building as a multi-use area, including hotel, commercial, administrative, and cultural facilities.
An agreement with the developer is expected at the end of the third quarter (Q3) of 2021. This is provided that the timeframe for the development process will be determined in agreement with the winning developer, with priority to be given to the party who has a faster timetable.
Soliman stressed that diversifying the uses of the building will ensure bringing in non-stop returns, whether from the hotel or commercial units. He noted that the Tahrir Square area is a strong attraction for offices and companies due to its strategic location between East and West Cairo.
The Tahrir Complex was established 70 years ago under a royal mandate as the first administrative building that includes government offices in Egypt. It was named the “Government Complex”, whose name was later changed to the “Tahrir Complex”. It consists of 13 floors with a construction area of 58,000 sqm, in addition to 1,356 rooms.
The building was designed by Egyptian architect Mohamed Kamal Ismail in 1948, with construction completed in 1951. It has a modernist architectural style based on soft geometric shapes devoid of external decorations, from which the Tahrir Square form was inspired.