Orascom Development Egypt (ODE) has signed a final agreement with the New Urban Communities Authority (NUCA) to codevelop 4.2 square kilometres of land in 6 October City in West Cairo.

The project is expected to comprise more than 19,000 units with a residential built-up area (BUA) of about 3.2 million square metres. It is anticipated it will generate an estimated £E77bn ($4.3bn) in residential sales over a period of eight years.

The project will also include a commercial area, educational district and sports club, as well as medical and leisure facilities.

Orascom will be responsible for all construction, development, internal infrastructure, marketing and sales activities. NUCA will provide the land along with all associated external infrastructure to the boundaries of the project.

The development agreement is based on a revenue-sharing model with NUCA entitled to 26 per cent of total residential sales proceeds for the first eight years.

NUCA is entitled to a total cash payment of £E11.4bn over eight years and a primary in-kind residential BUA of 130,000 sq m, delivered in year eight, which implies a land cost of £E 1,580 a sq m on a net present value basis. In addition to that, NUCA will be entitled to another in-kind residential BUA of 150,000 sq m divided equally in years nine and 10.