Palm Hills Development (PHD) and Madinet Nasr Housing & Development (MNHD) have signed an agreement to develop a residential community in East Cairo over 433, 643 sqm of land.
The project’s predicted revenue is between EGP 4.6bn and EGP 5.5bn.
“PHD will be responsible for all construction, development, internal infrastructure, marketing and sales activities, while MNHD will be contributing the land alongside all associated external infrastructure,” the companies announced in a joint press release.
The project will be constructed over four phases, and is expected to be launched within the fourth quarter of 2015.
The housing area will include 2,600 to 2,900 apartments, the companies highlighted.
“PHD will be entitled to a revenue share of 64%, with MNHD holding the remaining 36% which translates into an average NPV of EGP 1,900/m2 of land (dependent upon number of units to be contracted/sold during the project’s life),” the companies added.
In May, PHD signed a bridge loan agreement worth EGP 100m with Banque Misr and the Arab African International Bank (AAIB). The loan will be used to finance a project in the North Coast, whereby the company indicated that it is finalising the required procedures of the main loan, amounting to EGP 750m.