The Sovereign Fund of Egypt (TSFE) and A Developments have signed an agreement for redeveloping and repurposing the Ministry of Interior’s (MoI) erstwhile Lazoghli headquarters in Downtown Cairo into an innovation district.

The mixed-use project involves an estimated total investment of 800 million Egyptian pounds by A Developments, TSFE said in a statement.

The development agreement was inked by Amr Elhamy, CEO of TSFE Tourism, Real Estate & Antiquities Subfund, and Magdi Kassabgui, Chairman of A Developments.

The MoI complex is located in the heart of Downtown Cairo and consists of a 7-building complex with a built-up area of 39,895 square metres.

The statement said the project is divided into several phases with the first phase expected to be completed by end of 2023.

UK-based BDP is master planner and architect, with CHROME awarded the project management mandate while engineering consultancy services would be provided by Wassif Design Office.

The project’s anchor tenant would be IPAG Business School of Paris, which has partnered with TSFE for launching its first branch in Egypt.

The development also entails retail, technology hubs, incubators, office spaces, an international Business Process Outsourcing (BPO) hub and hospitality components. The envisaged 3-star hotel and serviced apartments will be operated by an international hotel operator.

“TSFE’s vision to develop an integrated mixed-use development focusing on innovation as its core value with LEED certified buildings and a green central courtyard to breathe new life into the historical downtown area of Khedivial Cairo,” the statement noted.

A Developments was awarded the project following a competitive bidding process launched in April 2022 by TSFE.

Hala El Said, Minister of Planning and Economic Development and TSFE’s Chairperson, said: “This project will redefine the face of downtown Cairo into a unique new destination for entrepreneurs and startups as well as young travelers which will further promote the development of Egypt’s flourishing startup scene as well as the tourism and real-estate sector, reflecting Egypt’s multifaceted economy.”

Ayman Soliman, CEO of The Sovereign Fund of Egypt, added: “This project is another manifestation, after Tahrir repurposing project, of TSFE’s investment strategy to preserving the city’s history while generating sustainable financial returns in partnership with leading private sector champions.”

TSFE in its capacity as the property’s landlord will lease the complex to A Developments for 25 years, earning a fixed rental return and revenue share.

(1 US Dollar = 30.92 Egyptian Pounds)

(Writing by Anoop Menon; Editing by Bhaskar Raj)