CAIRO: Orascom Hotels and Development announced Sunday that it will develop a real estate project in Egypt with a total value worth 1.5 billion EGP ($209 million) in collaboration with its fellow company Red Sea Construction for Mangrove Real Estate Investment.
Orascom explained in Sunday a statement to the Egyptian Exchange (EGX) that it implemented and activated the real estate development agreement during in the 4th of 2014. Under the agreement, Mangrove was allowed to develop a real estate project compromised of housing units over a 160,000 square meter (sq m) land in Red Sea’s El-Gouna city.
According to the agreement, Mangrove has the right to sell the residential units built over 100,000 sq m. Mangrove Real Estate Investment is owned by businessman Ahmed el-Sweedy.
“Orascom will achieve 345 million EGP in revenues in two phases during 2015,” the company stated.
Red Sea Construction will sign an independent agreement with Mangrove to implement the construction works of the project, added the statement.
Orascom further noted that this project is the beginning of its new startegy for the real state sector which is aimed to make advantage of development projects implemented in Gouna city over the past 25 years.
Orascom also announced that it reached advanced stages of negotiations with other foreign real estate developers to build another hotel project over a 600,000 sq m land plot.