Misr Italia Properties to get a syndicated loan worth EGP650mln
Misr Italia Properties is poised to receive a medium-term syndicated loan worth EGP650mln after it signed a pertinent contract with a consortium consisting of three banks.
With it acting as an agent and primary bookrunner, National bank of Egypt is one party to the contract alongside the Egyptian Gulf Bank and the Arab Investment Bank.
“ Extending this loan indicates how the banking consortium is supportive of the real estate sector. The state wants the sector to thrive and to receive as much investments as possible,” said chairperson of NBE Osama Okasha.
Upgrading the infrastructure serving properties will be helpful in meeting requests of investors, he explained.
With it linked to several economic activities and complementary services such as construction, contracting and building materials sector, the real estate sector helps boost total value added, prop up the gross domestic product and create new job opportunities for the Egyptian youth, he added.
Chief executive and managing director of Misr Italia Holding Mohmed Khalid El-Assal said that the loan takes part in financing New Cairo’s Cairo Business Park.
By means of constructing 42 offices and stores alongside a four-star hotel with 144 rooms, the latter eyes the creation of a zone serving businesses and advanced services, he elaborated.
With Cairo Business Park built on 78000 sqm area, up to 15 buildings out of a total of 42 premises will be delivered late this year, he noted.
This seven-year loan is made up of two tranches of EGP530mln and EGP120mln respectively. The first tranche is meant to finance offices and stores, whereas the second will be injected into the construction works of the hotel, according to head of syndicated loans department at NBE.
The three banks of NBE, the Egyptian Gulf Bank and the Arab Investment Bank hold stakes worth EGP300mln, EGP260mln and EGP90mln respectively.
Misr Italia for Urban Development is a subsidiary of Misr Italia Holding for Financial Investments which holds a land portfolio of 11mln Sqm.
MIUD is carrying out several projects worth EGP2.4bn inclusive of a mega residential resort and a five-star hotel run by Hilton Hotels Internations.
