The Administrative Capital for Urban Development (ACUD) has set up flexible payment systems for real estate developers looking to complete projects at the New Administrative Capital (NAC).
The ACUD move comes in light of the significant global economic impact of the ongoing coronavirus (COVID-19) crisis.
Magdy Amin, head of ACUD’s Real Estate Sector, told Daily News Egypt that the company has agreed for some developers to pay 50% of the value of their due instalments. The remaining value will be scheduled at interest rates based on the Central Bank of Egypt (CBE) rates.
Amin added that development requests are studied separately, with periodic follow-ups carried out on the implementation of private sector projects at the NAC.
He said that in the event any developer stumbles in their project’s implementation, their case will be studied to determine if it is due to the current ongoing global health crisis. Accordingly, the company will undertake the appropriate decision to resolve the implementation process according to an extended timeline.
The procedure is only being applied to developers who have problems in implementation their projects, he clarified.
Amin disclosed, “The ACUD provides land value instalment scheduling to real estate development companies who will pay 50% of the value of each instalment, and schedule the remaining value over a period of six months with interest.”
“Despite the presidential decision to postpone the transferral of government ministries and agencies to the NAC to 2021 instead of June 2020, the city has maintained its investment attractiveness and continues to receive requests from investors to obtain land,” Amin added.
As a result, Amin expects that the spread of the coronavirus has had no impact on investment opportunities at the NAC.
The NAC spans over 170,000 feddan, and will include 650km of road network and 20 residential areas projected to accommodate 6.5 million people. The development will include an international airport, monorail and electric train to link it with 10th of Ramadan and El-Salam cities.