Dubai: Real estate giants Al-Futtaim Group and Emaar announced plans to enter into a 5 Billion Egyptian pounds ( Dh2.98 billion) joint venture to develop ‘Cairo Gate’, a lifestyle and entertainment development on the Cairo- Alexandria desert highway, Emaar announced on Tuesday at Cityscape.
Spread over 160 acres, Cairo Gate will feature a mega shopping mall, an office park with facilities including a luxury hotel, schools, medical facilities and residences ranging from townhouses to villas and apartments.
The project will be located on 160 acres of land belonging to Emaar Misr, a subsidiary of UAE-based Emaar.
“As we boost our continued development portfolio in the Egyptian market we also demonstrate our belief in Egypt, its economy and its people,” said Mohammad Alabbar, Chairman of Emaar Properties.
This is one of several recent announcements of mega projects by UAE and foreign property developers into Egypt, signalling a revival in investor interest and confidence after the revolution, developers and analysts say.
Emaar has also announced its $2.1 billion “Emaar Square” in Cairo, a 250,000 square metre “city within a city” development in its flagship Uptown Cairo project. It features an open shopping mall, five-star The Address Hotel, serviced residences and office space, located at the highest point in Cairo with panoramic views of the city.
The bid for mall construction will begin in the first or second quarter of 2013 and is expected to be completed in three years, Mohammad El Dahan, chief executive of Emaar Misr, told Gulf News.
“There is more stability, the president is elected and security is restored,” he said.
The company maintained its confidence in the Egyptian market throughout the turbulent times of political change, as it is a market with huge demand, Ahmad Al Matrooshi, Managing Director of Emaar Properties, said in the interview.
It is also investing 250 million pounds in Emaar Drive, a road that will connect Uptown Cairo with Naser City and Heliopolis so that shoppers can commute easily, he added.
Funding for the project will be split between equity from Emaar and bank loans in Egypt, he said.
The project construction will employ about 3,000 to 5,000 people depending on the phase and during operations it will hire 12,000 people, said El Dahan.
The mall will bring luxury brands that do not yet have a presence in Egypt and there is major demand from big retailers in Dubai Mall that have not yet entered Egypt, according to Emaar.
Showcasing the project in Cityscape, Emaar hopes to attract retailers, reaffirm its commitment to the Egyptian market and show its global portfolio, the company said.
Among other property developments in Egypt, Majid Al Futtaim recently announced plans to begin construction of its Mall of Egypt on the outskirts of Cairo.
“The investment in Egypt now is a good sign of the recovery in that country,” said David Macadam, head of Retail at Jones Lang Lasalle. “The political climate in Egypt is moderating and the future is looking promising again for investment.”
Crystal Lagoons Corp, also recently announced a $600 million luxury resort in Sharm Al Sheikh developed by Egyptian tourism company Radamis for Hotels & Touristic Resorts.
