Capital Group Properties (CGP), owned by Abu Dhabi Capital Group (ADCG) and Al-Ain Properties, is planning a mixed-use project in Egypt, according to Assistant Housing Minister Khaled Abbas.
Abbas told local reporters at a conference in Cairo that the projects total investment will be $5.1bn of which the company has paid EG800m as first tranche to the New Urban Communities Authority (NUCA); dedicated to utilizing the project so as to start carrying out the project.
Abbas added that the project is located in Al-Shorouk city, north east of Cairo near the proposed New Capital City scheme.
Egypt has been encouraging foreign developers to enter the Egyptian market with UAE and Saudi firms leading the way.
Earlier this year UAE-based Al-Habtoor Group submitted a proposal for a potential major mixed-use development in Egypts new Capital City development.
In an interview with Saudi Arabias Al-Arabiya news channel, company chairman Khalid al-Habtoor said: [Al-Habtoor Group] has been studying the idea for some time. Egypt is ready for an investment of this scale.
The development is set to be built on 800,000 square metres of land in the newly proposed Capital City scheme east of Cairo.
A number of major schemes have been announced in the past year, and with Egypts continued need for foreign investment to finance these projects, real estate analysts are expecting a number of legislative changes to encourage foreign involvement.
The development of the New Capital City provides a massive opportunity for foreign developers and real estate firms within Egypt. The master project could help relieve some of the pressure on the existing Cairo urban area.
Egypt has seen a total of 7,560 residential units delivered in Cairo throughout 2015, compared to the scheduled delivery of 30,000 units forecasted by developers at the beginning of 2015, representing a materialisation rate of just 25 per cent, according to a report by US-based JLL.