Al-Futtaim borrows EGP 2 billion from 5 banks next April

Al-Futtaim Group will borrow EGP 2 billion from 5 banks, the most important of which is the loan-arranger HSBC, Commercial International Bank and Arab African International Bank to finance the establishment of a commercial center in New Cairo, as part of its “Cairo Festival City” project.

The loan was suspended due to the appeal on the contract of the project’s land, but Al-Futtaim will sign a settlement contract with the government in days by paying the price difference EGP 400 million. Therefore, Sources expected that Al-Futtaim will get the loan by the end of next April.

Commercial Festival Center is being established on a 298 thousand m2 area, with investments of up to EGP 4.3 billion. The commercial Center will include the most famous brands, trademarks, restaurants and a huge cinema center. Sources said that Al-Futtaim injected EGP 1.5 billion in 2011 in the project, which is slated to be finished in 2013.

Because of delaying the settlement with government, two loan-arrangers banks withdrew and the real estate market was affected negatively in the last time.

Sources expected that will be finished in 2018.

Noteworthy that Cairo Festival City Project is being established on a 3 million m2 area, with investments ranging from EGP 15 billion to EGP 20 billion.