Palm Hills Developments (PHD), Reacap Financial Investments (REACAP), and its subsidiary Svreico Real Estate Investments (SVREICO) agreed to co-develop an integrated residential and commercial community in Smart Village, with a total footprint of 10,000 sqm.
The project is located in the second phase of the Smart Village, which is home to a number of multinational and local corporations in West Cairo.
Through this agreement, PHD will be responsible for all construction, development, marketing, and sales activities. SVREICO will contribute to the deal with land alongside, all associated approvals from Smart Village Company and other regulatory authorities.
The project’s built up area will be up to 59,138 sqm, translating into an estimated revenue ranging between EGP 700m and EGP 800m. A shareholding company will be established for the project, with PHD owning a 51% stake in it, and REACAP owning a 10% stake, and other minority partners holding the balance.
Through the new entity, SVREICO will be entitled to an in-kind payment equivalent to a built-up area of 19,149 sqm to be delivered after 36 to 48 months. The project is expected to launch soon, with pre-sales commencing in the first quarter of 2016.