Plans for complex in Cairo boost Palm Hills shares

Shares in Palm Hills, Egypt’s second-largest listed real estate developer, rose nearly 4 per cent in trading yesterday after the company announced plans to build a vast new housing and office complex in Cairo.

Palm Hills said on Saturday that it was partnering with UAE government-backed Aabar Investments to build the project and the pair had signed a memorandum of understanding with the Egyptian government to build the 10,000 feddan (4,200 hectare) project.

Palm Hills, in which Aabar acquired a 5.1 per cent stake in November, said that the project would be named Wahet October (Arabic for October Oasis) and would be located in the 6th of October City district of the Egyptian capital.


The housing minister Mustafa Madbuli said that the mega-project would include homes, offices, shops and administrative buildings.

The news comes amid a flurry of high-profile announcements at the three-day Egypt the Future economic summit in the resort of Sharm El Sheikh.

These include plans revealed by Capital City Partners, a private real estate investment fund founded by the Emaar chairman Mohamed Alabbar, to develop a new administrative capital, a Dh72 billion real estate project comprising 700 square kilometres to the east of Cairo.

The land deal was signed by Mr Alabbar and Mr Madbuli at the conference. The news also came as officials from the Egyptian government and the Dubai-listed construction company Arabtec moved ahead with stalled plans to build a million low-cost homes in Egypt.

The deal was originally signed a year ago and has been hampered by funding disputes. On Saturday, Mr Madbuli said “all problems” were resolved and that the first phase to build 100,000 homes is set to begin, Bloomberg News reported.

Construction of the ambitious project was originally intended to begin in the third quarter of 2014 and was scheduled to last for five years.

lbarnard@thenational.ae

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