Palm Hills to co-develop integrated resort in North Coast

Palm Hills Developments(PHD) announces the signature of a co-developing agreement– on a revenue sharing basis – an integrated resort in the North Coast, with expected revenues of EGP 3 billion (US$383 million).

The resort is spreading over 565,530m2 (approximately 134.6 feddans) with a beachfront of 411 m2.

Palm hills is to develop the project in cooperation a private land owners. The project is located in Ras El Hekma on the North Coast, 65 km west of Hacienda White 1.

According to this agreement, PHD will be responsible for all construction, development, infrastructure, marketing and sales activities.

Furthermore, The project will be developed over 7 years and is expected to house 525 units representing a built up area of up to 235Km2, translating into an estimated revenue ranging between EGP2.5 billion to EGP3 billion.

In addition, the project is expected to offer community retail facilities and a boutique hotel.

PHD will be entitled to a revenue share of 80%, with partners holding the remaining 20%, at a minimum revenue guarantee of EGP200 million over 10 years.

The project is expected to be launched soon, with pre-sales commencing during summer 2016.

Moreover, Tarek Abdelrahman, PHD’s Co-CEO commented that the agreement would further enhance the company’s value proposition based on the recently adapted co-development and revenue sharing scheme, and replenish its land bank in the North Coast.