Cairo – Mubasher: Palm Hills Development Co on Sunday announced that its subsidiary Arkan Palm has signed a contract with the New Urban Communities Authority (NUCA) to develop a mixed-use innovative urban project in Sheikh Zayed City.
Spanning 205 acres near Nile University, the new project will feature residential, commercial, administrative, hospitality, medical, and recreational units, Palm Hills said in a statement to the Egyptian Exchange (EGX).
Upon the contract, NUCA will generate annual revenue from the project of EGP 10 billion over 12 years, in addition to EGP 100 million once the contract is signed, with a total value of EGP 2.5 billion at a discount rate of 16%, according to the statement.
The authority will get EGP 13 billion or 12.5% of the project’s cash flows over 10.5 years starting in a year and a half from signing the contract, equivalent to EGP 3.5 billion at a discount rate of 16%, the EGX-listed property developer added.
Moreover, the authority will own nearly 95,500 metres of the project including residential units spreading over 33,000 metres and commercial units over 62,500 metres.
Badr El-Din Real Estate Developments, the main shareholder in Arkan Palm, will manage all administrative activities under the contract, including financing, construction work, provision of internal facilities, marking, and residential units sale, the statement said.
NUCA will be responsible for linking the project with all required external facilities, the statement indicated.
It is worth noting that Palm Hills holds around 40% stake in Arkan Palm.
In February, Palm Hills reported a consolidated profit of EGP 906.8 million for the full-year ended 31 December 2018, versus EGP 936.47 million in 2017, including minority shareholders’ rights.
The Egyptian real estate firm logged EGP 7.42 billion in revenue during the 12-month period ended last December, up from EGP 6.6 billion in 2017.
Furthermore, the company unveiled that it aims to boost its sales to EGP 14 billion in 2019.
