CAIRO: Today Sixth of October Development & Investment Company “SODIC” and Heliopolis Development Housing (“Heliopolis Housing”) signed the co-development contract for c.655 acres in New Heliopolis, East Cairo. The signing ceremony was attended by Ashraf Salman, Minister of Investment, Dr. Hani Sarei El Din, SODIC’s Chairman, Magued Sherif, SODIC’s Managing Director, Mahmoud Fathy Hegazy, Holding Company for Construction and Hany El Deeb, Development Chairman and Heliopolis Housing’s Chairman and Managing Director.
The signed contract entails SODIC’s entitlement to 70% of the residential units revenues while Heliopolis Housing will be entitled to the remaining 30%. Furthermore, SODIC will be entitled to 69.8% of the commercial/retail revenues while Heliopolis Housing will be entitled to the remaining 30.2%. The minimum guaranteed revenues are estimated at approximately EGP 5.01 billion to be paid over unequal annual installments, while the projects total revenues are estimated to be EGP 30.35 billion. The project is planned to be developed over ten years and will comprise over 8,600 residential units in addition to the retail and commercial offering and a dedicated sports club.
Strategically located in East Cairo falling between Cairo-Ismailia and Cairo-Suez Roads, the land is directly adjacent to Al Shorouk city and is in close proximity to Cairo’s new administrative capital and a few minutes’ drive from Cairo’s new regional ring road. Planned for a fully integrated project including residential, retail, medical, education and sports facilities, the project is expected to create over 40,000 direct & indirect jobs over the course of its development. Commenting on the event Magued Sherif, SODIC’s Managing Director said “We are very excited to partner with Heliopolis Housing and to start developing this project. This is the beginning of an aggressive growth strategy for SODIC and we look forward to growing our land bank further.”
SODIC had participated in Heliopolis Housing’s last auction as part of its strategy to increase its land bank and pursue new opportunities for growth. The co-development contract marks SODIC’s first revenue sharing venture.
The preceding is a press release for SODIC and does not reflect the editorial policy of The Cairo Post.