Palm Hills to develop $8.5bn residential project in Cairo

Egypt's Palm Hills Development has signed a deal with the government's New Urban Communities Authority (Nuca) to jointly develop an integrated residential community over a 12.6-million-sq-m area in West Cairo. The project, which will offer apartment buildings, standalone units complemented with commercial, educational and leisure facilities, is estimated to cost E£150 billion ($8.48 billion), said a statement from the company. Palm Hills Development said the agreement with Nuca was in connection with co-developing the project on a revenue sharing basis. On completion, the integrated community is expected to offer 40,000 residential units in addition to commercial real estate and services, stated the top Egyptian developer. As per the contract, Palm Hills Development will be responsible for all financing, construction, development, internal infrastructure, marketing and sales activities, while Nuca will be contributing the land bank alongside all associated external infrastructure to the boundaries of the project. Nuca will also be entitled to a revenue share of 26 per cent, translating into E£25.2 billion ($1.42 billion) payable over 12 years to the Egyptian government, and an in-kind payment of a BUA (built-up area) of up to 422,000 sq m (consisting of 372,000 sq m of residential and 50,000 sq m of commercial). According to the developer, the project is expected to create 300,000 job opportunities. A major regional player, Palm Hills Developments builds integrated communities and has one of the most diversified land bank portfolios, spreading over 41 million sq m in Egypt. Its product offerings include primary homes on both West Cairo and East Cairo, as well as secondary homes by the Mediterranean Sea, North Coast, and commercial real estate across all operating regions.