The Sovereign Fund of Egypt’s (TSFE) Tourism, Real Estate and Antiquities Subfund and A Developments have signed an agreement for the development and transformation of Ministry of Interior’s former headquarters in Lazoghli into a prime-mixed use destination that revives Downtown Cairo.
The envisioned development plan is geared to transform the complex into a state-of-the-art innovation district including retail, technology hubs and incubators, office spaces, a branch campus for IPAG Business School of Paris, an International Business Process Outsourcing (BPO) hub as well as hotel and hospitality components. This transformational vision was the result of technical studies and surveying conducted by TSFE prior to the launch of the bidding process.
IPAG Business School partnered with TSFE to be the anchor tenant for the educational component, launching its first branch in Egypt.
The integrated offerings of the project are designed to serve the school’s students, entrepreneurs and founders though creating a state of the art hub for youth in downtown Cairo.
Hala El-Said, Minister of Planning and Economic Development and TSFE’s Chairperson, said: “The revival of downtown Cairo is one of the state’s top priorities which TSFE is persistent in pursuing by transforming the assets transferred to it by the state.”
This project will redefine the face of downtown Cairo into a unique new destination for entrepreneurs and startups as well as young travelers which will further promote the development of Egypt’s flourishing startup scene as well as the tourism and real-estate sector, reflecting Egypt’s multifaceted economy.
Magdi Kassabgui, Chairperson of A Developments, praised TSFE’s role in reusing state owned assets and emphasized the economic return of such a project in one of the most important areas of Khedival Cairo which will contribute in regaining the city’s glamour especially after the movement of several ministries to the New Administrative Capital.
Ayman Soliman, CEO of The Sovereign Fund of Egypt, said: “We are committed to reviving downtown Cairo and transforming it into an innovation and technological hub for our youth.”
He added: This project is another manifestation, after 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 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.
Ahmed Osman, CEO of A Developments, said: “We have carefully studied the project’s components and hired the UKs BDP as master planner and architect for the project who are one of the most renowned firms in the world in the field of adaptive reuse of historical buildings. The project will follow international sustainability and energy efficiency standards.” The Project Manager of this Development will be CHROME and the Engineering Consultancy Services will be provided by Wassif Design Office.
The company has completed the designs for the project to develop the headquarters of the Ministry of Interior and will begin implementation work after the end of the Eid Al-Fitr holiday, according to Osman.
Othman added to Daily News Egypt that the company launched two tenders, the first to carry out the infrastructure works for the project, and the second to remove a number of small buildings in the old headquarters.
He explained that the shareholder structure of “A Developments” includes 5 shareholders, all from the industrial sector, including the Reliance Group for Waste Management and Ready-Mix Concrete, and the Swiss Chemical Company.
In this partnership, TSFE in its capacity as the property’s landlord leases the complex to A Developments for 25 years, earning a fixed rental return and revenue share. A total of EGP 800m of investment is estimated to be injected by A Developments to transform the complex and offer it to potential tenants.
Tenants will be carefully selected following TSFE’s vision to develop an integrated mixed-use development focusing on innovation as its core value with LEED certified buildings and a green central courtyard to breathe new life into the historical downtown area of Khedivial Cairo. The project is divided into several phases with the first phase expected to be completed by the end of 2023.