Palm Hills Development- Photo courtesy of company website
CAIRO – 18 June 2017: Real estate developer Palm Hills Development (PHD) and the New Urban Communities Authority (NUCA) will launch a 12.6 million square meter project in 6 October City, PHD said Sunday.
“Located in West Cairo with a launch schedule in 2018, the mega project will be 88 percent residential and 12 percent commercial,” PHD said in a statement to the Egyptian Exchange.
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.
Based on the agreement, NUCA will have a revenue share of 26 percent and in-kind payment of up to 371,000 square meters of residential area and 50,000 square meters of commercial area.
“The new project is considered to be the largest single piece of land acquired by PHD,” company chairman Yasseen Mansour said in the statement.
“The project brought the PHD total land bank to 41 million square meters, making the company the largest real estate developer in terms of sales and land bank,” he said.
“With regards to prices, the starting price of units in the project is expected to be LE 12,000 ($0.6) per square meter, subject to 10 percent increase on an annual basis for six years and by 5 percent annually for the following five years,” Pharos Holding said in a research note Sunday.
“We assume 2018 construction and infrastructure costs to be LE 300/sqm and LE750/sqm, respectively, which rise by 5 percent annually,” the report noted.