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Abraj Misr pays EGP 600m out of total EGP 800m for The Gate's land A number of bank financing offers for the project are being studied; all details to be announced by late 2016
Omar El-Shenety, managing director of Multiples Group, the financial adviser of Abraj Misr, revealed the financing sources of The Gate project. Abraj Misr is a real estate developer in the field of construction, using green technology. The project is to be the first residential, administrative, and commercial environmentally friendly community in Egypt and the region, with investments reaching amounts of EGP 4.5bn. He said that the company set a financing structure relying on four major sources: the project's capital through a group of shareholders in Abraj Misr, the developer and the major partner in the project, bank financing, and the revenues of selling the project's different units. El-Shenety stated that Abraj Misr recently paid EGP 220m of the land's price. With that instalment, the total paid amount became EGP 600m out of the total EGP 800m price of the project's land. He noted that the company is keen to execute The Gate as planned and on schedule, and in accordance with the highest standards of quality. Abraj Misr is studying a number of banking offers to finance The Gate and the negotiations are in their final stages, said El-Shenety. He noted also that a final deal is expected to be agreed upon with one of the largest banks or an alliance including a number of banks in the fourth quarter of 2016, saying that all the details will be announced by late 2016. Fatahallah Fawzy, strategic consultant for Abraj Misr's CEO, said the company obtained the building licences needed to begin executing The Gate project, noting that obtaining the final licences took some time. However, he said that will not affect the project's execution and nor its completion in accordance with the announced dates, saying that the work has already begun at the site. Fawzy said also that SIAC began its work on the project. SIAC is a leading company in general contracting, with whom Abraj Misr signed an EGP 1.1bn contract to be the general contractor of The Gate project and responsible for carrying out all the project's concrete works and buildings on an area of 400,000 sqm. The Gate is on an area of 36,000 sqm in the heart of Heliopolis. It includes eight residential, commercial, and administrative towers, in addition to hotel apartments and a sports and entertainment club. The direct investments of the project amount to approximately EGP 4.5bn. It is divided into four phases to be completed in about five years.
