SODIC makes first $44mn payment for Egypt plot
301-acre site will be mixed-use development in heart of New Cairo
Sixth of October Development & Investment Company (SODIC) announced today that its wholly owned subsidiary, SOREAL for Real Estate Development, made the first payment for the 301-acre plot awarded by the New Urban Communities Authority (NUCA) in its latest auction.
The company had placed a bid of EGP 1,915 per m2 of land, amounting to a total land cost of some EGP2.4bn ($335mn) . The recent EGP315mn ($44mn) payment represented the 10% down payment and administrative fees.
The funding for the project is already in place, with SODIC's EGP1bn ($139.8mn) capital increase well underway, a large portion of which will be directed to financing the project.
In addition, SOREAL For Real Estate Development, has already signed a medium term development finance facility with the Arab African International Bank for a total amount of EGP950mn ($132.8mn) to fund the project.
The 301-acre plot of land, strategically located in the heart of New Cairo directly off Road 90, is planned for a mixed-use development of over 2,000 units and is expected to create over 20,000 jobs over the course of its six-year development time plan.
SODIC's participation in NUCA's latest auction signals its confidence in the market following its robust performance in 2012 and 2013. The land acquisition represents its first significant land purchase in Egypt since 2007. SODIC today has a clean, unutilised land bank of over 3.5mn m2 in prime areas in East and West Cairo.