MAF awards $400m Egypt mall contract
Cairo, September 20, 2012
Majid Al Futtaim Properties, a unit of UAE mall developer MAF Holding, has awarded a $400 million contract to Orascom Construction/ Besix joint venture for the construction of a gaint shopping mall in Cairo which is due to be completed by the first half of 2015.
The Mall of Egypt will be built on 399,400 sq m of land on Al Wahat Road in Sixth of October City outside of Cairo at total investment of 4.9 billion Egyptian pound ($800 million), said a top official of MAF.
"The development will offer 162,500 sq m of Gross Leasable Area (GLA) and will host 380 shops, anchored by a Carrefour hypermarket and indoor Ski Park, 17-screen cinema complex and an amusement park," said Peter Walichnowski, the chief executive officer of Majid Al Futtaim Properties.
MAF Properties, he said, is a leader in ownership, development and management of shopping malls together with hotels and communities in the Mena region.
“We are now in our 20th year of operations and, notably, have been in Egypt for ten of those years. Egypt’s strong economic fundamentals, such as its young and growing population, make it an attractive growth market. We are committed to building on our success in Egypt and investing in the country’s long-term economic growth,” he added.
He said the construction work will start after the final building permit is secured by year end. The project is expected to employ 9,000 people during the construction phase and 7,000 once the Mall has opened.
“We have been very impressed with the Orascom Construction/Besix JV team and the work they have done in Egypt. We look forward to a successful partnership,” Walichnowski stated.
OCI chairman and CEO Nassef Sawiris said this was the largest foreign investment in Egypt since the election of the new government.
"We have been very impressed by the efficient manner in which the new leadership reviewed required regulatory approvals for this project and we look forward to continuing to work together.
According to him, The Mall of Egypt development marks an important milestone in the country’s economic recovery and signals a resurgence of private foreign investment in the country.
"Over the past decade Orascom Construction has been a key player in the construction of Egypt’s mega commercial projects and is responsible for a total built-up area of over 2 million square meters, including the extension of MAF Properties’ Maadi City Centre," said Sawiris.
"The Mall of Egypt award underscores the success of the joint venture in constructing large-scale commercial projects and we look forward to building on our long-standing relationship with Majid Al Futtaim Properties," he added.-TradeArabia News Service