New Administrative Capital’s (NAC) has sold 17,500 feddan from the 24,000 feddan offered for sale – excluding the landscape, infrastructure etc which make up 16,000 feddan – Magdy Amin, head of Real Estate Sector at the Administrative Capital for Urban Development (ACUD) said.
He added that the remaining 6,500 feddan will be marketed until July 2020.
The Egyptian government is planning to move all ministries and agencies in June 2020 to the NAC. The Government District’s development process exceeded 70% and they are currently working on the interiors of the ministry buildings.
Additionally, the infrastructure’s completion of the Government district will be complete in April 2020.
ACUD is the owner and developer for the NAC in Egypt and is located 35 km east of Cairo with a total area of 170,000 feddan.
Daily News Egypt sat down with leaders of the ACUD to learn more about the development process at the new capital project.
Ahmed Zaki Abdeen ACUD’s chairperson said that they are preparing designs for the Shura Council to move to the NAC.
Abdeen added that the company is ready to offer lands in mixed use areas in the NAC after the operation of the government district at twice the current meter price.
Furthermore, ACUD’s spokesperson Khaled El Hosseini, said that prices per square metre jumped by approximately 150% since the first offering.
What are the updates in the Green River area in the NAC project?
Abdeen: The Green River area spans over a total of 1,660 feddans, out of which 1000 feddans have been reserved for green areas and 660 feddans for mixed-use activities. The mixed-use areas are currently being developed and marketed through the New Urban Communities Authority (NUCA). The NUCA is responsible for developing the area’s infrastructure and offering lands for developers as well as managing the projects within the Green River area.
How much is the price per metre that the ACUD plans to offer the NUCA?
Abdeen: The NUCA has bought the square metre in Green River with EGP 2,100.
What is the update regarding the MU4 and MU7?
Abdeen: The MU4 and MU7 zones are specialised for mixed-use commercial, administrative, and medical projects. We have offered very few plots of lands in these two areas. Additionally, we do not intend to offer lands in this area in the current period; however, we plan to offer lands in the two areas after the Government District’s operation which includes all ministries and government agencies, as well as the presidency and parliament, with doubled price per square metre compared to the current price.
How much is a square metre in these two areas?
Abdeen: The price per square metre reached EGP 15,000 and depends on the height of the project’s buildings, as every extra additional unit over seven floors means a 5% increase in price of the square metre for investors, and can reach approximately EGP 40,000 and EGP 45,000.
How many companies have paid the 2% serious reservation and not the 20% down-payment yet?
Abdeen: There are about five or six companies that haven’t paid the 20%. This means that they are not developing in the mixed-use areas until they the 20% and sign a contract.
When will the ACUD officially offer lands for developers in the mixed-use areas?
Abdeen: The company is ready to offer lands in mixed-use areas in the NAC after the operation of the government district at twice the current metre price.
Are you ready to transfer all governmental agencies to the NAC in June 2020?
Abdeen: Yes, we are. The political leadership is very keen on moving the ministries and agencies in time. However, the parliament will move in 2021 due to the beginning of the new legislative session of parliament in 2021. The building is huge and still in need of a lot of work. Moreover, the ACUD is preparing designs for Shura Council to be in the NAC.
Which operator is going to provide technological services in the project?
Abdeen:Telecom Egypt will manage and provide technological services and support in the NAC through an usufruct contract for 25 years. Moreover, last week, we signed an agreement with Etisalat Misr to provide technical services for the NAC. Etisalat Misr won the tender for the supply, implementation, and operation of city management systems in the NAC to provide technological services and technical support within the new capital. Accordingly, we will sign another agreement with Orange in the coming period.
When will the joint venture with Electricité de France (EDF) and German Dorsch Group be established?
Abdeen: We are currently finishing the procedures of establishing the joint ventures with the operators and service provider in the NAC projects. In mid-January, three joint ventures will be established with EDF to provide electricity service and Dorsch to provide water and irrigation services as well as, another French service provider company in gas services.
What are some areas that the company is currently working on?
Amin: We are working on developing infrastructure in two areas, MU4 and MU7 inside R2 and R3 in the first phase of the NAC project. MU4 is overlooking the Green River and MU7 is close to CBD. Each MU is divided to approximately 50 plots of land with sizes ranging between one feddan to five or six feddans and allocated for business towers from 15 to 80 floors.
How many developers are working in MU4 and Mu7?
Amin:There are 17 developers, two of which have received lands in these areas.
How much is the price per square metre in MU4 and MU7?
Amin:We offer square metre with prices starting at EGP 20,000 according to the building’s height and place.
What is the size of lands that have been sold out?
Amin:The total area for sale in the first phase of NAC project is 24,000 feddans and the rest are roads and landscaping, out of which 17,500 feddans have been sold out. The other 6,500 feddans will be marketed until July.
Are there international operators or investors requesting land?
Amin: We have several requests to know more about investment opportunities and check lands in the NAC project. Therefore, we have a lot of discussions with other developers. Additionally, we are studying requests by 18 investors to acquire lands for residential and mixed-use projects.
How many developers are working in the NAC?
Amin: We have about 300 developers.
How many ministerial approvals have been issued for developers in the NAC?
Amin: We have issued more than 50 ministerial approvals.
What is the aim beyond contracting with EDF France to provide electricity service?
El Hosseini: We aim to provide services with minimum loss of electricity which is currently estimated at 35%, and we want to reach 7%. EDF France will also provide online and smart solution to supply the NAC’s residents with electricity services. This system is to be implemented with high techniques and solid infrastructure.
Do you have any requests from international institutions to acquire lands for headquarters in the Diplomatic Area?
El Hossieni: The African Export–Import Bank (Afreximbank) requested a land area of 110,000 square metres (sqm) divided into two plots, the first in the diplomatic district with an area of 50,000 sqm to establish housing for the bank’s employees at a price of $400 per sqm, and the second with an area of 60,000 sqm in the central business district to establish a headquarters for the bank and an African trade centre. The bank is seeking to establish an administrative tower with a height of 400 meters and includes 100 floors. The average price of a square meter of land in that area was $2500 per meter depending on the place.
What are the ACUD’s activities in promoting the NAC project?
El Hossieni: Last month, we have participated in an international exhibition in Barcelona, Spain at Fira de Barcelona to showcase countries’ experiences in establishing smart cities. Accordingly, we plan to participate in that exhibition next year to largely promote the project.
What is the percentage of increase in prices since the first offering to date?
El Hossieni: The prices hiked by approximately 150% since the first offering until now.
Do you receive requests by developers to expand the instalments of land value?
El Hossieni: We have already received very few requests by developers to not extend or increase instalment periods, but to pay the instalment in more than one payment, provided that they are adhering to a contracted period of time to pay the whole price of the land.
How many ministerial approvals are being issued?
El Hossieni: We are preparing to issue about 16 ministerial approvals for developers in the NAC. Additionally, we have issued 2203 building permits for projects.
Tell us more about the updates in the Government District?
El Hossieni: The development process of the Government District at the NAC exceeded 70% and currently we are working on interiors in ministries and it will move in June 2020. Additionally, the completion of infrastructure in government district will be completed in April 2020. The total cost of infrastructure in the government district is approximately EGP 40bn.