Cairo – Mubasher: Talaat Moustafa Group Holding Company (TMG Holding) has entered into an agreement with Abu Dhabi-based investment and holding firm ADQ and Modon Properties to collaborate on the development of the $24 billion Ras El-Hekma project.
The collaboration in Ras El-Hekma’s project comes in line with TMG Holding’s strategy of ongoing creation of added value for shareholders, according to a bourse filing.
ADQ signed an agreement on Saturday to acquire Ras El-Hekma’s development rights for $24 billion. Works on the project are scheduled to start in early 2025.
The project is set to be implemented by an ADQ-led private consortium to develop Ras El-Hekma into a large new city.
The Egyptian government will hold a 35% stake in the Ras El-Hekma development.
Ras El-Hekma, a coastal region in Egypt situated approximately 350 kilometres northwest of Cairo, is planned to undergo a monumental transformation to be positioned as a premier Mediterranean holiday destination, a thriving financial hub, and a dynamic free zone with state-of-the-art infrastructure, all aimed at bolstering Egypt's economic and tourism sectors.
In January, ADQ and ADNEC Group signed agreements to acquire a 40.50% stake in ICON, the hospitality arm of TMG Holding, through a capital increase.
TMG Holding reported a consolidated net profit after tax and non-controlling interest of EGP 2.68 billion in the first nine months (9M) of 2023, a 34% year-on-year (YoY) from EGP 1.99 billion.
