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.”