Supplementary Agreement on Al-Futtaim’s EGP2bn Loan to Be Signed Next Jan.

In a new recent development regarding EGP 2 billion loan for Al-Futtaim Commercial & Administrative Centers SAE – a subsidiary of Al-Futtaim Group Real Estate (AFGRE),  a consortium of 6 banks announced that they will be signing a supplementary agreement next month.

The loan arrangers; HSBC, the Commercial International Bank of Egypt (CIB), Arab African International Bank, Banque Misr, Arab Bank and Banque De Caire are set to sign next January a supplementary agreement to finance state-of-the-art retail precinct Festival Centre in Al-Futtaim’s mega project Cairo Festival City.

Last year, the 6 banks signed final finance contracts with Al-Futtaim. Yet, the lateness in reaching a settlement agreement between the company and the Egyptian government have delayed the disbursement of the EGP 2 billion loan.

An official source with knowledge of the loan agreement told Amwal Al Ghad that the loan is designed to establish a state-of-the-art retail precinct Festival Centre in Al-Futtaim’s mega project Cairo Festival City with estimated costs amounted to around EGP 3.4 billion.

Festival Centre in Cairo Festival City will be built over an area of 298,026 sqm with an estimated investment of EGP 3.4 billion and will comprise a gross leasable area of 158,675 sqm to include around 250 outlets including leading international flagship stores & brands, boutiques, international restaurants and the largest screen cinema complex in Egypt.

Banque Du Caire is aiming to contribute with EGP 350 million in Al-Futtaim’s loan.

It is worth mentioning that AFGRE had obtained a bridge loan worth EGP 400 million from HSBC by the beginning of 2013.

Elsewhere, Eng. Magdi Farahat – Egypt’s Deputy Housing Minister – said the New Urban Communities Authority ( NUCA ) had recently reached a final agreement with Dubai-based Al-Futtaim Group and Saudi-based  Al-Hokair Group over disputed lands in New Cairo and 6th of October City.