PM Sherif Ismail and Minister of Housing Mostafa Madbouly while witnessing the signing of the agreement- File Photo
CAIRO – 11 September 2017: Palm Hills Development Company signed an agreement Monday with the Ministry of Housing to develop 3,000 feddans for a new project in 6 October City with LE 150 million ($8.5 million), the Housing Ministry said in a statement.
The signing, which was witnessed by Prime Minister Sherif Ismail, is reflecting the government’s commitment to support the private sector and boost its engagement volume in the Egyptian economy.
Named ‘October Oasis’, the project will include residential communities, commercial and entertainment centers, educational and services projects.
The government’s share in the project will be 26 percent, where it will acquire LE 25 billion from the project sales and 420,000 square meters of buildings, in addition to a stake in the project revenues.
Preliminarily signed in Egypt Economic Development Conference (EEDC) in Sharm El-Sheikh in March 2015, the agreement is considered the latest memorandum of understanding (MoU) signed at that time that became a contract.
Palm Hills’ net profits reached LE 349 million in the first half of 2017 compared to LE 169 million in the year-ago period.
The consolidated results revealed that the company achieved LE 137 million in the second quarter of this year, up from LE 63.9 million in the same period of the previous year.
Total revenues leveled up to LE 3.22 billion in the first six months of 2017 from LE 2.16 billion in the same period of the previous year, while recorded LE 1.64 billion in Q2 of 2017 compared to LE 1.08 billion in Q2 of 2016.
In June, Palm Hills and the New Urban Communities Authority (NUCA) announced launching a 12.6 million square meters’ project in 6 October City.
Located in West Cairo with a launch schedule in 2018, the mega project will be 88 percent residential and 12 percent commercial, Palm Hills said.
While Palm Hills will be responsible for financing, construction, development, marketing, sales and internal infrastructure of the project, NUCA will contribute the land and external infrastructure.