Through a banking alliance including the National Bank of Egypt (NBE), the Egyptian Gulf Bank (EG Bank) and the Arab Investment Bank (AIB), an official agreement has been signed to issue a medium-term syndicated loan worth EGP 650m to Misr Italia Properties.
Following the contractual agreement, NBE Chairperson Hisham Okasha stated that this joint loan shows immense support from the alliance to the real estate sector, especially at a time that marks the government’s interest in enhancing this sector and dedication to pumping more investment into it. It also contributes to developing the infrastructure in order to fit the requirements of companies striving to seize investment opportunities inside the Egyptian market. Okasha further highlighted that the real estate sector is linked to many other economic activities and other necessary related services such as the construction and contracting sector and the building materials sector, which have a great impact on maximizing value-added services and increasing national production along with providing new job opportunities.
Moreover, Vice Chairman of the National Bank of Egypt Yehia Abou El-Fotouh, emphasized that the real estate sector has succeeded in achieving the government’s growth goals, along with providing different services and job opportunities.
Misr Italia Properties’ CEO and Managing Director, Mohamed Khaled Al-Assal said that the purpose of this joint loan is financing part of the Cairo Business Park project in New Cairo. The project includes a business and service hub composed of 42 administrative, commercial and service buildings, in addition to the construction of a four-star hotel with a capacity of 144 rooms, which will be managed by Hilton Hotels and Resorts.
Furthermore, Misr Italia Properties’ CEO and Managing Director, Mohamed Hany Al-Assal emphasized the company’s drive to expand in terms of new locations and investments to include both residential and commercial projects equipped with the best services with international standards. The company is also keen on establishing a project that presents everything its customers search for in a work environment, besides providing diverse and innovative spaces for companies, which are all present in Cairo Business Park. The project is located on an area of 78,000 square meters, divided to suit companies of all sizes with 15 buildings out of a total of 42 being delivered by the end of this year.
Chairman of the Group of Major Companies and Syndicated Loans of the National Bank of Egypt, Sherif Reyad stated that the loan’s duration is up to seven years divided into two tranches in Egyptian pounds, where the maximum amount of the first tranche is 530 million pounds, through which administrative and commercial buildings are funded. While the maximum limit for the second tranche is 120 million pounds, which is directed to finance the hotel. The loan is distributed among the banks as follows 300 million pounds for the National Bank of Egypt, 260 million pounds for the Egyptian Gulf Bank, and 90 million pounds for the Arab Investment Bank.
Misr Italia Holding has been at the vanguard of developing Egypt’s leading real estate market for years. It is known for providing paramount projects for residential, commercial, coastal and hospitality properties across Egypt. Misr Italia Holding has grown to become one of the largest developers with total investments of EGP 68 billion over the coming 14 years.
The company’s land bank totals to 11 Million square meters across Egypt with 11 residential projects, 9 commercial projects, 5 luxury hotels and 6,000 delivered units. It is currently developing several projects, most prominently Kai El Sokhna with investments of 2.4 billion pounds including a residential resort and a 5-star hotel managed by Hilton Hotel Chain. In addition to Cairo Business Park administrative project in New Cairo, and La Nuova Vista residential project in New Cairo, as well as Il Bosco and Vinci projects in the New Administrative Capital and Il Bosco City project in Mostakbal City.