Dubai: The Aldar-ADQ owned Egyptian developer SODIC has made an offer to buy its peer Orascom Real Estate (ORE), as another mega-deal looms in that country’s property market. The Board of Directors at Orascom for Development - the parent company of ORE - has given SODIC the go-ahead to do a due diligence ‘on an exclusive basis’.
If all the boxes are ticked during the due diligence, an indicative offer price of 2.46 billion Egyptian pounds could be made for Orascom Real Estate.
It was last year that the Abu Dhabi duo of Aldar Properties and ADQ bought 85.5 per cent in SODIC, which has built a reputation for turning out upscale residential communities. Acquiring Orascom Real Estate would thus be deemed a straight fit for SODIC, and give it a sizeable portfolio of built assets and land.
“The proposed acquisition is in line with SODIC’s growth strategy to expand its offering and portfolio of mixed-use residential communities in its core and target markets and, if concluded, will strengthen SODIC’s position as a leading national developer by scale and reputation,” said a statement.
The Aldar-ADQ consortium ‘continues to support SODIC’s growth and development, enabling it to unlock opportunities and expand business networks in order to drive growth and create value’.
Egypt is seen as a market rich in possibilities by some of the biggest corporate names in Abu Dhabi, whether that’s in real estate, banking, the startup space or other sectors.
There are also projects in Switzerland, Oman and, of course, in Egypt. In the latter, it is building the 'O West' at the 6th of October City, over a 4.2 million square metre area.