Wadi Degla Developments (WDDs) won a contract to develop Magawish Village in Hurghada, the company announced Sunday.
Chairman Maged Helmi said investments will total EGP 3bn.
“The project, which relies on a form of partnership, obligates WDDs to develop the village, which is owned by Misr Tourism, in return for a specified amount of money (cash share) or a contribution in kind,” the company said.
“The total revenues expected from the project amounts to EGP2.3bn, out of which EGP 1.2bn is made up of cash as well as shares in kind, will go to Misr Travel.”
The village will be renovated along with all the existing facilities and establish tourist units, entertainment, and trading services. WDDs will also build four star hotels with a 200 room capacity over a three year period.
“An EGP 30m advance will be forwarded to WDDs upon receiving the award letter,” Wadi Degla said. “Another EGP 75m will be given to Misr Travel this fiscal year and EGP 640m in the span of five years.”
During the Cityscape conference in September, Wadi Degla announced two new projects, one in Ain Sokhna and another in New Cairo.
A new residential project in New Cairo is expected to contain 14,000 units over 2.5m sqm with total investments of EGP 13bn. Revenues from the project are expected to total EGP 20bn.
The project will be implemented in four years and will be developed over four stages. Its main target is middle-income citizens, who represent the largest growing demand for housing in the country.
The Ain Sokhna project, called Morano, will be constructed over a 470,000 sqm area and contains 2,000 units that vary from apartments, villas, and duplex units. The volume of investment amounts to EGP 1.5bn. The project also comprises a four-star hotel with a 110-bed capacity.
The real estate company is seeking to grow by 60% by the end of 2015.
Wadi Degla Developments’ projects are divided into two groups: resorts and residential projects. The resort projects of the company include the project of Marina Wadi Degla, on an area of 628,335 sqm, 132,892 sqm of which are for the buildings.
That project started in 2005 with 1,298 units and achieved a volume of sales amounting to 100%. The company also has the Blumar Sidi Abd El-Rahman project on an area of 273,211 sqm, 119,380 sqm of which are for the buildings, with 914 rooms. That project was launched in 2008 and achieved a sales rate of 89%.