The New Urban Communities Authority (NUCA) has received an offer from Egyptian and Arab alliances to develop partnership projects. The authority has requested companies to make offers to compete on the projects of the second phase.
The planning and projects sector has completed the preparation of lands for investment and service activities, in addition to individuals’ lands.
Deciding the price of the square metre is underway in preparation for announcing the offering date.
Waleed Abbas, Assistant Minister of Housing for NUCA affairs, said that the authority will offer 15 lands in the second phase of the partnership projects with the private sector in New Cairo, Sheikh Zayed, 6th of October City, New Damietta, and New Aswan.
Abbas told Daily News Egypt that the total area of the lands is nearly 4,524 acres. Specifying the estimated value of NUCA’s share is being decided in preparation for announcing the offering and receiving offers from companies.
NUCA received 60 offers from Egyptian and Arab companies to develop partnership projects. The authority requested from companies to re-submit their offers at the official announcement of the offering.
The new offering includes a land of 2,000 acres in October Oasis, and another of 65 acres in 6th of October City. It also includes five lands in Sheikh Zayed of 410 acres, 190 acres, 73 acres, 19 acres, 74 acres to establish urban, commercial, administrative, hospitality, and tourism activities respectively, in addition to one land of 22 acres in New Aswan, and a land in New Damietta with a space of 67 acres.
The new offering also includes six lands in New Cairo, distributed on lands of areas of 250 and 204 acres next to Madinaty, in addition to three lands with areas of 500, 400, and 150 acres next to the middle Ring Road, as well as a land of 100 acres in south El-Teseen Street in Fifth Settlement.
The authority has introduced amendments to the conditions of the new offering, including experience required from companies that seek to develop projects in partnership with the NUCA. The condition included a past experience in developing lands of areas ranging between 100-500 acres, with the priority given to companies that make partial cash dollar payments.
The authority decided to give priority to Egyptian investors who are allied with foreign investors and will pay the land’s value in dollars transferred from abroad. The NUCA requested from companies to look for foreign—especially Gulf—investors in order to form coalitions and compete on projects.
Among the companies that made partnership offers are Dar Al-Maaly for Real Estate Development and Investment, Salman Abdullah’s Aqary, and Fawaz Al Hokair’s Egyptian Centers for Real Estate Development Company. Additionally, there were partnership offers with Tatweer Misr, Orascom Development and Management, Al Ofouk Real Estate Investment, Misr Italia Group, 6th October Development and Investment, SODIC, and Hussein Anwar Atallah’s Dubai Real Estate Development.
Other companies include the International Center for Real Estate Development, El Shams for Housing and Building, Mabani Real Estate Invesmtent, Nasr City Housing Company, Hassan Allam Real Estata, and Badr El-Din Real Estate Investment.
The second phase of partnership projects
Abbas expected the second phase of the partnership projects to witness demand from Arab and Egyptian companies after the success of the first phase and signing four contracts for projects on an area of 1,927 acres in Madinaty, New Cairo, and 6th of October City with total investments of EGP 131bn.
“NUCA depends on partnerships to provide sustainable income over the years of development for real estate projects past the selling phase. The partnership mechanism includes providing revenues for the NUCA throughout the implementation period of the projects and after its conclusion, as selling housing units can be delayed to take advantage of increasing prices.
Abbas said that the planning and projects sector has concluded the documents of the ministerial decision for the partnership project with Palm Hills. Detailed sketches were sent to the consultants of the project to be approved before the decision is issued.
He added that the revenues of the project of an area of 500 acres in New Cairo are expected to be EGP 35bn. NUCA will obtain 42% of the project’s revenues, including EGP 10bn financial share paid over 14 years in addition to an in-kind share of the total built-up area of the project of 150,000sqm, including residential units of 132,200sqm and commercial units of 17,800sqm.
He explained that the sector is reviewing the ministerial decision for the second phase of iCity, which NUCA develops in partnership with Mountain View.
He pointed out that the company has obtained the ministerial decision of the first phase of iCity in New Cairo. Total investments of the project are estimated at $3.6bn.
NUCA has signed a partnership contract with Mountain View and Saudi Sisban Holding Company to develop iCity on an area of 500 acres, with total revenues of EGP 35bn. NUCA’s share is 40%, equivalent to EGP 14bn.
The planning and projects sector is also reviewing another project in partnership with Mountain View-Sisban in 6th of October City, on an area of 370 acres. Total revenues of the project are estimated at EGP 26bn, with NUCA’s share being 30% worth EGP 7.5bn, representing EGP 4.8bn in cash while the rest is in-kind shares representing 11.8% of the constructed areas.
Offering a new phase of Beit Al-Watan
Abbas said that the NUCA will offer a new phase of Beit Al-Watan for Egyptians abroad, including 6,429 residential lands in nine new cities, and 25 service lands in four cities.
“The NUCA is reviewing the pricing in Egyptian pounds and its equivalent in dollars according to the exchange rate at the time,” Abbas said.
The recent offering of Beit Al-Watan lands included 3,000 lands with sales of $900m, including 2,000 lands in New Cairo and others in 6th of October City, Badr City, New Damietta, New Aswan, New Assiut, and New Qena.
The price of the metre in New Cairo reached $550, in New Damietta $400, in Badr $225, and in 6th of October City $450, while it reached $125 in New Assiut, New Qena, and New Aswan. Additionally, 10% are being added for special areas and parks, and a further 15% for the units facing the Nile or the sea.
The offering conditions included paying an advance of 25% of the land’s value and instalments over five years. In the case of instant payment, 15% are deducted from the remaining amount after paying the advance.
New Cairo expansions
NUCA is preparing detailed plans for the expansions in New Cairo, 6th of October City, and Sheikh Zayed in preparation for offering lands for individuals and investors, as well as medium housing projects.
Abbas explained that 71,000 acres were added to 6th of October City, 15,000 to New Cairo, and 9,300 acres to Sheikh Zayed.
The NUCA has issued a ministerial decision with the approval to plan and distribute 50 investment projects with an area of 4,450 acres. The projects serve 15 new cities and include integrated residential projects, tourist villages, and cooperative housing.
The projects include Al Bourouj, owned by Capital Group Properties, on an area of 1,042 acres in Al Shorouk City and in iCity on an area of 500 acres in New Cairo.
The projects aim to attract foreign investments, especially from the Gulf. They include Emirati and Saudi investments, and will provide at least 250,000 direct and indirect jobs.
The planning sector at the NUCA has completed planning for 58,000 acres during the last quarter of 2016, distributed over 6th of October City, New Cairo, New Assiut, New Beni Suef, Obour, New Souhag, 15 May City, and New Qena.
He said that more areas are planned, especially those attached to cities with high development rates, through a specialised team.
Some cities, however, are completely developed, so there are plans to utilise unused areas or add more areas.