The Sovereign Fund of Egypt (TSFE) announced on Tuesday that its real-estate subfund, TSFE Tourism, Real Estate & Antiquities, has signed a development agreement with Reliance Developments to repurpose the former headquarters of Egypt’s Ministry of Interior in downtown Cairo.

This collaboration aims to transform the historic building into a premier mixed-use destination, breathing new life into downtown Cairo. According to TSFE, the project is expected to require an investment of EGP 800 million ($25.9 million) by Reliance Developments to revamp the complex.

The project will include the construction of a three-star hotel, serviced apartments, retail and support services, educational facilities, and entertainment facilities.

"The proposed development plan aims to transform the complex into a cutting-edge innovation district, also featuring technology hubs and incubators, office spaces, and facilities dedicated to arts and culture" TSFE said in a statement.

Sitting Egyptian Minister of Planning and Economic Development and TSFE Chairperson, Hala El-Said, emphasized the project’s importance, stating, “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.”

El-Said added, “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.”

Under the terms of the agreement, TSFE will lease the complex to Reliance Developments for 25 years, with the fund earning a fixed rental return and a share of the revenue. The project is part of the State Ownership Policy, which aims to increase the private sector's share in Egypt's economic activity to 65 percent, up from 30 percent.

TSFE CEO Ayman Soliman reiterated the fund's commitment to revitalizing downtown Cairo, noting, “This project is another manifestation, after the Tahrir repurposing project, of TSFE’s investment strategy to preserve the city’s history while generating sustainable financial returns in partnership with leading private sector champions. We are confident in Reliance Developments’ expertise to turn our joint vision into a reality.”

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