Al-Futtaim Real Estate Injects EGP 3.7 Bln To Cairo Festival City

Al-Futtaim Group Real Estate injected EGP 3.7 billion to the Cairo Festival City project in New Cairo City for the period from the start of its construction till now, said Dr. Mohamed Mekkawy, Managing Director of Al-Futtaim Group Real Estate.

Mekkawy told Amwal Al Ghad that the parent company injects about EGP 120 million monthly to resume the establishment of the project and to be delivered in the determined date. The Company spent about EGP 1.5 billion on infrastructure expected to be finalized by the beginning of 2013.

There are still negotiations between Al-Futtaim Group and some banks to arrange a loan of EGP 2 billion, Mekkawy noted, adding that the banks conditioned arranging such finance on signing the final settlement agreement concerning resolving the company’s problems with the government.

Mekkawy called on the Egyptian government to speed up the settlement of land disputes. The Company agreed with the previous cabinet led by Ganzouri to sign the final settlement agreement after paying EGP 400 million, the price difference. However, an agreement was not signed yet. Assigning Osama Saleh the Ministry of Investment may accelerate the settlement deal as he was the head of the settlement committee, Mekkawy said.

Cairo Festival City is being established on an area of 3 million m2 including a commercial mall on an area of 400,000 meters with an investment cost of EGP 3.5 billion in addition to 550 villas, 1400 housing units and two hotels.