Palm Hills Developments Receives NUCA's Approval On The Co-Development Of An Integrated Residential Community Spanning 12.6 Million Sqm In West Cairo
Palm Hills Developments ("PHD" or "the Company") announces the approval of the Egyptian New Urban Communities Authority ("NUCA") on a mega co-development on a revenue sharing basis of an integrated residential community spreading 12.6 million sqm (3,000 feddan) in West Cairo. The project is an integrated community with complete residential complex offering multi tenants buildings, standalone units complemented by full spectrum of commercial, educational and leisure facilities.
The land allocation will be split as 88% for residential and 12% for commercial developments. The project is strategically located in the Sixth of October city. Through this co-development project, the Company will be responsible for all financing, construction, development, internal infrastructure, as well as marketing and sales activities. While NUCA will be contributing the land bank in addition to all the external associated infrastructure to the boundaries of the land. The integrated community is expected to offer residential Built Up Area ("BUA") ranging between 6 to 8 million sqm. NUCA will be entitled to a cash revenue share of 26% in addition to an in-kind payment of up to 371k sqm of residential BUA and 50k sqm of commercial BUA. The project is planned for launch during 2018.
Yasseen Mansour, PHD's Chairman commented: "This is one of the most important milestones in the Company's history. This is the single largest piece of land acquired by the Company in its long history and represents a quantum leap for the Company moving it from developing integrated communities to developing a small city. I am very pleased with our second partnership with the Egyptian government on this mega co-development project, which expands PHD's land bank to 41 million sqm, positioning the Company as the largest Egyptian property developer in terms of sales and land bank. Through this mega development, we expect to create 500k job opportunities and house up to 200k Egyptian citizens. This co-development further solidifies our long-term partnership with the Egyptian government, following the successful agreement closing and residential units’ sales launch of Palm Hills New Cairo in 2016"
