Orascom inks $59m deal for Egypt's Palm Hills
Luxury housing project set to be delivered by 2014-2015
Orascom Construction Industries (OCI) has signed a $59m deal with Egyptian property developer Palm Hills for a luxury housing development near Cairo.
Palm Hills has contracted OCI to carry out its Golf View project.
A statement to the Egyptian bourse details that OCI is authorised to start construction on the 2m m2 scheme to the west of Cairo that was initially launched in 2007 .
Beltone Financial reported that the project is expected to be delivered by 2014-2015 and contain a total of 550 units.
The contract award is positive news for both companies, mainly due to the fact that prominent contractors such as OCI had been reluctant to enter into agreements with Palm Hills, which has suffered from liquidity constraints and rumours that it had defaulted loan repayments, according to Beltone.