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.
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 EGP 800 million ($25.9 million) of investment by Reliance Developments to transform the complex, TSFE said in a 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 TFSE Chairperson Hala El-Said.
“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-Said, who is also the minister of planning and economic development, added.
TSFE will lease the complex to Reliance 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 percent, up from 30 percent.
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 repurposing 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,” he added.