The Sovereign Fund of Egypt (TSFE) has announced that its real-estate sub-fund – TSFE Tourism, Real Estate & Antiquities – has signed an agreement with A Developments to repurpose the former headquarters of the Ministry of Interior in downtown Cairo.
Through this agreement, TSFE aims to transform the building into a prime mixed-use destination to revive downtown Cairo.
The project is estimated to require LE800 million ($25.9 million) of investment by A Developments to transform the complex, TSFE said in a recent statement.
The project will encompass the construction of a three-star hotel and serviced apartments, as well as retail and support services, educational services and an international business process outsourcing (BPO) hub.
“The proposed development plan aims to transform the complex into a cutting-edge innovation district, also featuring technology hubs and incubators, office spaces and an IPAG Business School of Paris campus,” according to the TSFE.
“Revival of old downtown Cairo is a top priority for the state, and the TSFE is committed to pursuing it by revitalizing the assets transferred to it by the state,” according to TSFE Chairperson, Minister of Planning Hala el-Saeed.
“The project will redefine the face of downtown Cairo into a new destination for entrepreneurs, startups and young travelers which will promote Egypt’s flourishing startup scene and contribute to the growth of the tourism and real-estate sectors. TSFE’s ability to partner with renowned industry players is key to realizing these transformations,” el-Saeed said.
TSFE will lease the complex to A Developments for 25 years and earn a fixed rental return and revenue share. The fund is part of the State Ownership Policy, which aims to raise the private sector share in Egypt’s economic activity to 65 per cent, up from 30 per cent.
TSFE CEO Ayman Soliman said that the fund is committed to reviving downtown Cairo and transforming it into an innovation and technological hub for our youth.
“This project is another manifestation, after Tahrir re-purposing project, of TSFE’s investment strategy to preserving the city’s history while generating sustainable financial returns in partnership with leading private sector champions. We are proud to partner with a reputable Business School such as IPAG and are confident of A Developments’ expertise to turn our joint vision into a reality,” Soliman added.
The TSFE is a private investment fund established in 2018 to shape, manage, and perfect opportunities for investment in Egypt’s state-owned assets by creating partnerships and co-investments with private investors.
The Sovereign Fund of Egypt operates in accordance with globally accepted best practices in all respects, from its clear and disciplined investment focus to its governance.
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