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200 companies acquire lands at New Administrative Capital: Abdeen - Daily News Egypt

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200 companies acquire lands at New Administrative Capital: Abdeen

ACUD is considering offering land in partnership system with developers

The Administrative Capital for Urban Development (ACUD) has managed to sell lands for 200 companies in all the offerings at the New Administrative Capital, says ACUD Chairperson Ahmed Zaki Abdeen.

Abdeen added that half of the third offering at the eighth neighbourhood (R8) in the New Capital has been sold out.

The company has prepared for the third offering of the Administrative Capital’s lands, and 18 real estate companies acquired lands from this offering, at a total 600 feddan, with sum value of EGP 10bn, Abdeen noted.

Furthermore, he explained that price per feddan at the Capital is estimated at EGP 15.4m.

There are many ongoing negotiations with more than one foreign and Arab investor to acquire plots of land in the Capital, indicated ACUD’s Chairperson.

Abdeen elaborated that the company is considering offering land in a partnership system with developers, in addition to a cash system by offering lands, noting that the ACUD did not deal through the partnership system before to receive money to develop the Capital’s infrastructure.

ACUD has begun to receive requests by foreign investors in partnership with Egyptian investors to acquire plot of lands with spaces not less than 500 feddan, revealed the chairperson.

Moreover, he disclosed that Chinese and Korean companies have submitted requests to acquire lands in a partnership system during the last period, however, these offers are still under study, highlighting that the ACUD intends to offer lands in a partnership system in the third offering.

“The ACUD will not allow developers to offer units from their projects before obtaining ministerial approval. Developers doing that are subject to legal liability, as this is a legal violation,” Abdeen said.

He stressed that the conditions for obtaining land in the New Administrative Capital are not unfair, explaining that companies pay for the land value in four instalments, and each instalment is “20% of land value, after paying 20% as a down-payment,” noted Abdeen, adding that “40% of the companies have already started construction works”.

Over and above, Abdeen confirmed that, “The ACUD did not contract with the Chinese CFLD company, the developer of the central business district, due to disagreements on the percentage of the New Administrative Capital revenues, where the Chinese company offered 33% in revenues for the Administrative Capital company, and the Administrative Capital company wishes to get 40%.”

Meanwhile, the company is currently negotiating with a Korean company to develop 14 feddan in the Capital, which are similar to the Chinese company, explained Abdeen,  noting that, “If negotiations are completed, it will be better.”

As for ACUD Deputy Chairperson, Mohamed Abdel Latif, he said that the company’s budget will increase during 2019 to reach EGP 65bn, compared to EGP 45bn, pointing out that 43 companies have applied to obtain lands in the third offering so far.

He explained that every 3 months ACUD conducts studies on financial and executive offers and company sales to study the size of the implementation of projects in the New Administrative Capital.

Abdel Latif revealed that there is a 20% increase in the third offering’s metre price, where the price of a metre will be between EGP 4,500 to EGP 5,000, and the estimated area of the third offering is 2,000 feddan.

Furthermore, he divulged that some major real estate developers have submitted offers to the ACUD in order to acquire land according to the partnership system, including the Talaat Moustafa Group, Misr Italia, Al Rajhi Holding, explaining that the offer of Emaar Misr is still under negotiation.

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