In a new development regarding UAE-based Al-Futtaim Group Real Estate (AFGRE)’s EGP 2 billion loan – 5 banks announced on Monday that they have finished preparing the final terms and conditions to finance the loan. The five banks to arrange al Futtaim’s loan are; the Commercial International Bank of Egypt (CIB), HSBC, Arab African International Bank, Banque Misr and Banque De Caire.
The loan is designated to fund construction of Al-Futtaim’s mall in New Cairo, as a part of its project Cairo Festival City. The Group is currently working on its Cairo Festival City project with estimated costs of EGP 3.4 billion.
Al-Futtaim is in advanced talks with the Egyptian authorities to reconcile over Cairo Festival City project, an official source with knowledge of the situation told Amwal Al Ghad.
The source further said the Group had obtained a bridge loan worth EGP 400 million from HSBC by the beginning of 2013.
It is worth mentioning that the government reached a proposed settlement with Al-Futtaim regarding Cairo Festival City project after 25th January Revolution which included suspending the case and transferring the ownership of the project to the Group along with extending the implementations date to 2014. In return, the UAE Company shall pay extra EGP 420 million upon the signing and transferring the ownership. However the company asked for linking paying with increasing the construction area in the disputed land which made the prosecutors convert the case to a committee of experts.