Palm Hills Developments jointly with Reacap Financial Investments, subsidiary of Naeem Holding's,and its subsidiary Svreico Real Estate Investments (SVREICO)have agreed to co-develop an integrated residential and commercial community in Smart Village, with a total footprint of 10,000m2.
The project is located within the second phase of Smart Village, a business park that is home to multinational and local corporations in West Cairo.
Through this agreement, PHD will be responsible for all construction, development, marketing and sales activities, while SVREICO will be contributing the land alongside all associated approvals from Smart Village Company and other regulatory authorities.
The project’s built up area will be up to 59,138m2, translating into an estimated revenue ranging between EGP700 million and EGP800 million.
A shareholding company will be established for this project, with PHD owning 51% stake, REACAP owning 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 19,149m2, to be delivered after 36-48 month. The project is expected to be launched soon, with pre-sales commencing during 1Q2016.
Palm Hills' net profits surged 380.5% to EGP 646 million for the first half of 2015, up from EGP 134.44 million for the same period of the previous year.
