New Egypt Housing and Construction Company announced the signing of contracts to sell 243 acres (approximately one million meters) in the new city of Heliopolis with a total value of approximately 1.73 billion pounds
New Egypt housing said in a disclosure sent to the Egyptian Stock Exchange on Thursday, that these contracts were signed with the buyer as part of the approval of the Board of Directors at the April 5th session
Located in the 20th district of New Heliopolis, the average price per meter in the sale is 1,700 pounds, not including the cost of facilities.
20% of the total price is to be paid at the time of signing contracts, while the remaining 80% will be paid on 16 equal quarterly payments for four years without interest
The company said it would use the proceeds of the sale to accelerate the development of the city of New Heliopolis in line with the approved plan to turn it into an integrated city.
The sale is part of the board’s decision to cancel the previous 270-acre estate in The New Heliopolis because of the bidder’s seriousness and the introduction of the space in a direct sale manner.
New Egypt Housing Selects Mountain View to Partner with Heliopark Project
Tamer Nasser, CEO of New Egypt Housing Company
New Egypt partnered with Mountain View Development and Real Estate Investment Company to develop the Heliopark project in New Cairo after the latter won the bid to develop the project
The committee announced on December 28
Mountain View has been selected to partner with The Heliopark Project among a number of major real estate development competitors, most notably Hassan Allam Real Estate and Majid Al Futtaim Real Estate Group.
The company said the selection process was attended by specialists in urban planning, finance and legal under the supervision of the office of Engineer Fathallah Fawzi as a technical consultant, and hani Seryuddin’s office as legal advisor.
The Heliopark project spans 1,695 acres across the new city of Cairo on the Cairo-Suez desert road, and is expected to generate revenues of EGP 397 billion over a 23-25-year period.
New Egypt is scheduled to receive 30% of revenues equivalent to approximately EGP 119 billion, with a guaranteed minimum of EGP 80 billion, while Mountain View will receive 70% equivalent to 278 million pounds according to the partnership offer.
The development period for the project is 15 years, while the collection period ranges from 23 to 25 years, and Mountain View is scheduled to pay an advance amount of EGP 1.4 billion to be spent in two payments, one at the time of signing contracts and the other within 18 months of signing
In March 2020, the company cancelled the plan to rely on an overseas management partner, saying it had an alternative development plan based on a partnership with some developers to exploit parts of the land portfolio, similar to the agreement signed with Sudek to develop 650 acres in New Heliopolis years ago.
The company’s land portfolio is worth 80 billion pounds according to the 2019 survey
New Egypt has a huge untapped land portfolio valued at around EGP 80 billion, according to a 2019 survey conducted by the company compared to market prices in similar regions.
The company has partnered with Sudek over the past years to develop 655 acres and has developed a strategic plan to invest another 2,048 acres.
New Egypt is a subsidiary of the Holding Company for Construction and Construction – under the Ministry of Public Business, and Holding Construction acquires 72.2% of the company’s shares.