Al-Futtaim, Emaar plan major Cairo project
Dubai, October 2, 2012
Al-Futtaim Group and Emaar, the two UAE-based international real estate firms, today announced an initial intention to enter into a EGP 5 billion ($810 million) joint venture agreement to develop ‘Cairo Gate’, a large lifestyle and entertainment development.
The project will come up on an Emaar Misr property of 160 acres of prime land on the Cairo- Alexandria Desert Highway.
Cairo Gate will cater to discerning shoppers from Egypt and the world over. While a mega shopping mall will be the centerpiece of the development, it will be complemented by an office park with world-class facilities including a luxury hotel, schools, medical facilities and residences ranging from townhouses to villas and apartments.
When finalised, the JV agreement will mark a new milestone in the real estate industry as the region’s two mega developers, who already have large developments in Egypt and contribute significantly towards the growing Egyptian economy, have come together to commit both expertise and investment to the local Egyptian market.
Mohamed Alabbar, chairman of Emaar Properties, said: “We are proud of this partnership which will add tremendous value to the real estate and retail industry sectors at large, and we look forward to working together with Al-Futtaim Group and realising the full potential of this venture.”
Commenting on the prospects of the Egyptian market, he added: “As we boost our continued development portfolio in the Egyptian market we also demonstrate our belief in Egypt, its economy and its people”.
The first phase of Cairo Gate development will comprise a mall with a gross leasable area of 120,000 sq m, and will be anchored by Al-Futtaim’s retail brands such as IKEA, Marks & Spencer, Toys “R” Us, ACE, Intersport, Guess, Esprit as well as a multitude of additional world-class shopping brands apart from restaurants, cafés and leisure outlets with a strong outdoor theme.
Omar Al-Futtaim, vice-chairman and group CEO of Al-Futtaim, said: “This JV represents a significant and long-term partnership between Al-Futtaim Group and Emaar who are on a new path for growth in Egypt. The agreement demonstrates our confidence in the Egyptian economy and will raise Egypt’s profile as a nation focused on innovation, excellence, and dynamic sustainable development in the retail and real estate sectors.”
Cairo Gate has a frontage of one kilometre along the Cairo-Alexandria Desert Road near the Smart Village commercial precinct, and will complement the residential, hospitality and commercial components of Emaar Misr's development. The primary catchment areas including 6 October City and Giza have a population of over six million residents.
Emaar Misr is a major real estate developer in Egypt and is one of the most important direct foreign investors with an investment capital of EGP 31.67 billion. – TradeArabia News Service