Egypt’s SODIC offers to acquire 100% of Orascom Real Estate

Egyptian property developer SODIC has submitted on Monday a non-binding cash offer to acquire 100 percent share capital of Orascom Real Estate (ORE) for 2.46 billion Egyptian pounds ($125 million).

ORE, the residential compound builder’s parent company Orascom Development Egypt, is owner of O West Project, a 4.2 million square metre real estate development located in West Cairo.

Late 2021, Abu Dhabi’s Aldar Properties and state holding company ADQ bought a controlling stake of 85.5 percent in SODIC, and the purchase of Orascom Real Estate would further expand their Egyptian real estate business.

“SODIC is pursuing strategic growth opportunities across several markets in Egypt.” the developer said in a bourse filling on Tuesday, adding that it is part of its strategy to grow its presence and market share, leveraging its strong brand equity and solid track record.

“The transaction if consummated adds another strong development to SODIC’s West Cairo portfolio, broadening the developers’ offering in one of its strongest markets and cementing its position in the primary homes market.”

EFG Hermes has been engaged by the shareholders of ORE as the sole financial advisor.

Earlier in July, SODIC submitted an offer to buy up to 100 percent of Madinet Nasr for Housing and Development’s (MNHD) share capital at a price that valued MNHD at 6.18 billion pounds. However, MNHD rebuffed the offer, explaining that it did not represent the company’s true value and called on SODIC to reconsider it.