Cairo – Mubasher: Orascom Development Egypt on Tuesday announced the establishment of Orascom Real Estate for Land Development Co in collaboration with the New Urban Communities Authority (NUCA) to develop land plots in Western Cairo.
The deal came as part of the dispute settlement between Orascom for Housing and NUCA, the company said in a filing to the Egyptian Exchange (EGX).
Orascom Development holds a 70% stake in the new real estate arm, while Orascom Development chairman Samih Sawiris will contribute around 30% of the new firm's capital, according to the filing.
The agreement stipulates a partnership between Orascom real estate and NUCA to develop a 1,000-acre plot of land in Western Cairo.
The company will complete all the contracts and deals related to the aforementioned partnership within a month, Orascom added. The company will reveal the whole details upon signing the deal.
It is worth noting that Orascom Development had signed offers to sell some of its non-core assets at around EGP 1.24 billion two month ago.
Orascom Development’s capital amounts to EGP 1.1 billion distributed over 221.16 million shares at a nominal value of EGP 5 per share.
