Banque du Caire has signed a EGP 670m syndicated loan contract in favour of Marakez company for real estate, a subsidiary of Fawaz Al Hokair Group, to finance the second phase of the company’s Mall of Katameya.
Banque du Caire Chairperson and CEO Tarek Fayed said the financing comes in line with the bank’s continuous support to the real estate sector.
The bank succeeded, in partnership with Banque Misr and the Arab African International Bank (AAIB), in arranging the financing for Markaz’s project. The loan aims to finance 50% of the total estimated investment cost of the second phase of the Mall, which amounts to about EGP 1.340bn in total.
Banque du Caire assumes the role of financing agent and the AAIB acts as the guarantor, while Banque Misr is the general coordinator in the financing contract. The legal advisor to the banks is Sarie ElDin and Partners, and the legal advisor to the borrower is Helmy, Hamza & Co.
The project’s second phase represents about 30% of the Mall’s total area. It is anticipated that the Mall will begin operating in stages starting from 2021.
Fayed stressed that his bank is keen to support Egypt’s real estate sector by pumping all the funds necessary into economically feasible real estate projects in which the state is interested.
He noted that Banque du Caire’s business strategy and expansion plans aim to give full priority to all credit sectors. The focus will be on financing various major development projects which contribute to supporting Egypt Vision 2030.
Fayed added that the financing process is an important step in strengthening the bank’s role in encouraging foreign investments in the real estate investment sector. He pointed out that the loan comes as a continuation of the bank’s extended relationship with Marakez and their investments in Egypt, in line with the state’s directives to attract and encourage investors to establish new urban projects.
Work has commenced on the project’s first phase, with its completion expected in 30 months after the first dispersal from the funding.
Banque du Caire had participated in financing the first phase of the Mall of Katameya by playing the role of the primary arranger.