Egypt’s Talaat Mustafa Group (TMG) has said it will start the development of 335,000 square metres of land within its Al-Rehab and Madinaty communities in East Cairo by 2023.
The company said in a stock exchange statement last week that it would develop mixed-use, residential, commercial and office projects within the two communities using the off-plan sales model.
The two communities are expected to house a total population of 700,000 people when complete.
The project forms a key component of four strategic transactions concluded by TMG Holding with strategic investors since 2020 to unlock liquidity required for new investments.
In August 2020, TMG had signed a 4-billion-pound ($255 million) financing agreement with First Design Company, co-owned by National Bank of Egypt (NBE) and Banque Misr, for developing mixed-use projects in the two communities.
In December 2020, the company had transacted bulk sale of a pool of non-residential assets worth 1.5 billion pounds ($96 million) to an entity [unnamed] owned by institutional investors [unnamed].
In May 2021, the Group had concluded another bulk sale, comprising of unsold stock of non-residential units nearing completion in Madinaty and Al Rehab, valued at 1.7 billion pounds ($108 million), to Rawasy, a real estate investment joint venture of NBE and Banque Misr.
in June 2021, TMG concluded its fourth transaction and the second with Rawasy, worth 9 billion pounds for some non-residential assets in Madinaty currently under development.
TMG said it has already obtained 3.5 billion pounds ($574 million) from the deal and the rest would be collected over three instalments from 2022 to 2024 and would be used to meet some of the financing the requirements of Noor City.
(1 US Dollar = 15.68 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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© ZAWYA 2021