Egyptian real estate marketing company New Avenue Real Estate succeeded in renting out new administrative headquarters to Alstom Egypt, New Avenue Chairman Ahmed El-Dessouky stated Sunday.
The administrative headquarters is on an area of 3,500 sqm inside Cairo Festival City in Fifth Settlement with rental costs valued at EGP 55m over a five-year period.
Alstom Egypt is a specialised company in the transport of energy projects.
El-Dessouky, said that these transactions reflect the return of demand for real estate services by major international companies, especially for administrative buildings, after the political and security situation in the past years led to reluctance to acquire headquarters and office property inside the Egyptian market.
He added that the company has successfully leased the new administrative headquarters for Alstom Egypt for a period of five years for EGP 1m annually.
In the recent period, investors and company owners have been more flexible in order to reduce the price of leasing per square metre for administrative buildings so as to curb the recession and stimulate investments.
He noted that in the case of continuing such policies, the demand for office real estate would return to its 2010 rates, which would in turn contribute to market recovery.
El-Dessouky’s company aims to expand its business and contract with major real estate developers to market their projects during the next phase.
“The company markets projects for about 100 real estate development companies, including Emaar, Sodic, Mountain View, Palm Hills, and others,” said El-Dessouky.
Aala Ezzat, head of commercial at New Avenue, said that the company is renting an office building for the company OLX in Fifth Settlement on an area of 550 sqm with rental costs totalling EGP 16.5m over a period of five years.
Ezzat added that the company is also providing new headquarters in 6th of October City for the school Europa-Schule Kairo, which has a branch in Fifth Settlement and another in Mivida project. The total area of land is 12,000 sqm, and the rental value is EGP 1bn.
New Avenue Real Esate has leased the land from the owner for 25 years and the school will pay the total amount through monthly rent instalments.
Source: Daily News Egypt