SODIC Awarded 500 Acres in West Cairo Through Bid on NUCA’s Co Development Offering

Sixth of October Development & Investment Company “SODIC” announced receiving the official award letter for a 500 acre plot allocated by the New Urban Communities Authority (NUCA). The 500 acre plot is located in the Sheikh Zayed Extension area, is a mere 10 minutes’ drive from SODIC West, SODIC’s flagship mixed-use community in West Cairo. The project is expected to comprise over 5000 residential units, and leverage off SODIC’s strength in creating vibrant mixed-use full-fledged communities.

The deal entitles NUCA to total payments of EGP 14.2 billion over 11 years of which EGP 8.5 billion are fixed installments, in addition to 15% of the annual collections. The projected payments imply a land cost per sqm of EGP 2,300 on a net present value basis discounted at 16%. Commenting on the news Magued Sherif, SODIC’s Managing Director said “The addition of these 500 acres brings our undeveloped land bank to eight million square meters, giving SODIC a runway of at least ten years of development.  The addition comes timely as we have almost completely developed our 1,500 acre flagship development SODIC West, now a vibrant community home to over 22,000 residents”. The 500 acre plot was offered on a partnership basis in a large land offering of 6000 acres by NUCA in which SODIC participated in December 2017.