Arkan Palm Real Estate Investment obtains a long-term financing of 1.5 billion pounds

09/09/2021

A banking alliance grants Arkan Palm Real Estate Investment Company a long-term financing of 1.5 billion pounds to implement the first phase of "205" project
Arkan Palm Real Estate Investment obtains a long-term financing of 1.5 billion pounds to implement the first phase of the "205" project

A banking alliance led by Egyptian Export Development Bank as the initial main arranger, general coordinator and financing and guarantee agent, and with the participation of 4 other banks represented in Housing and Development Bank, The United Bank, Suez Canal Bank and Med Bank, succeeded in concluding a long-term financing contract with a total value of 1.5 billion pounds for the company Arkan Palm Real Estate Investment in order to finance part of the investment cost of the first phase of Project 205 in El Sheikh Zayed City.

The shares of the participating banks in the financing are as follows (650 million pounds for Egyptian Export Development Bank, 300 million pounds for Housing and Development Bank, 250 million pounds for The United Bank, 150 million pounds for Suez Canal Bank and 150 million pounds for MedBank).

The signing was attended by Mervat Sultan, Chairman of Egyptian Export Development Bank , Dr. Ahmed Galal, Vice Chairman Egyptian Export Development Bank, Hassan Ghanem, Chairman of Housing and Development Bank, Ashraf El Kady, Chairman of The United Bank, and Hussein Refai, Chairman and Managing Director of Suez Canal Bank Nevine Kashmiry, Deputy Managing Director of Business Halls at The United Bank, and Iman Abou Zaid, Head of Bank Credit and Syndications at Midbank, and from Arkan Palm Real Estate Investment Company and Badr El Din Group, Eng. Mamdouh Badr El Din, founder and president of Badr El Din Group, and Eng. Amr Badr El Din, Chairman of the Board Arkan Palm management company.

The signing was also attended by a group of all financing sectors, as well as the concerned sectors represented in credit risks and legal sectors, in addition to members of the work teams from all parties concerned with Arkan Palm Company.

From her side, Ms. Mervat Sultan, Chairman of Egyptian Export Development Bank, affirmed her appreciation for all participating banks, as she highlighted that this cooperation is not the first among the five banks and will not be the last in the field of corporate finance.

In a related context, Sultan indicated her pride in the company's distinguished architectural models that match the most important international architectural models to reflect the new strategy for building the modern Egyptian state.

On the other hand, Dr. Ahmed Galal, Vice Chairman of Egyptian Export Development Bank, was keen to thank all the parties involved in the financing, praising what Arkan Palm had provided over the past twenty years to revitalize the construction movement in Egypt, especially El Sheikh Zayed City.

Meanwhile, Hassan Ghanem, Chairman of Housing and Development Bank, stressed the bank's constant keenness to support and provide the necessary financing for major projects that contribute positively to creating an added value for society and achieving sustainable development, believing in the vital role of the banking sector in supporting the national economy in all fields. He expressed his happiness to cooperate in this banking alliance with Arkan Palm, a leading real estate development company, to establish urban and development communities in new cities, which contributes to a developmental leap in the areas of providing services, housing, and job opportunities.

From his side, Hussein Rifai, Chairman of Suez Canal Bank, expressed his happiness with the participation of Suez Canal Bank in this important joint financing within a banking alliance that includes a group of leading national banks for the purpose of financing one of the important real estate development and development projects, which is implemented by one of the leader companies in this field is Arkan Palm Company and Badr El Din Group, a leader in the field of real estate development and construction.

Commenting on this event, Ashraf El Kady, Chairman of The United Bank, praised the joint financing, which was led by Egyptian Export Development Bank with high professionalism for the benefit of Arkan Palm Company and Badr El Din Group, one of the most important investors in the field of real estate investment in the market.
El Kady expressed that the real estate investment sector is redrawing the urban map of Egypt. It comes within the Egyptian state's plan for urban expansion and maximizing the volume of real estate investments. The real estate sector is the main and direct driver of many sectors, most notably the construction sector and manufacturing industries. This contributes to stimulating economic growth, creating more job opportunities, developing infrastructure, and expanding the field of digital transformation.

El Kady added that The United Bank is considered one of the most important banks supporting real estate investment activity in all its categories. The United Bank is the seventh largest bank in pumping real estate investments in the market.

Mrs. Eman Abou Zeid - Head of Bank Credit and Syndications Sector at Midbank, praised "the cooperation with Arkan Palm Real Estate Investment Company for their role in supporting the real estate sector in Egypt in particular and advancing development in general." Abou Zeid stressed the role of Medbank in supporting various projects, which is in line with the state's ambitious plan to attract investors and provide all facilities to support the investment sector in Egypt. Many distinguished services in the coming period, within the framework of the bank's expansion strategy to achieve future ambitions in the Egyptian market under the slogan "We work for your future"

The attendees praised the cooperation between the work teams of the banks participating in arranging the loan, which reflected the interest of Egyptian banks in supporting economic activities and sectors whose positive results are reflected on the national economy and development plans in the country in general, including the real estate sector, which includes many direct and indirect job opportunities and activities related to the sector, which also allows the expansion of integrated residential communities with the required quality and safety standards.

They stressed that the loan will contribute to accelerating the pace of construction, construction and delivery of the "205" project, which will completely change the map of El Sheikh Zayed area and west Cairo, in addition to the project's contribution to the use of thousands of direct and indirect Egyptian labor, as the project is expected to provide about 57 thousand job opportunities. .

After the signing, the heads of banks and banking leaders inspected the sales headquarters of the "205" project in Arkan Plaza, looked at its models and expressed their admiration for the design of the project, which will become the heart of the entire west of Cairo, as it is located on the most prominent plot in El Sheikh Zayed City, with a south facade of 1 km long on the 26th of July axis directly. North facade of 1.2 km ~ 1 meter on El Bostan Street in El Sheikh Zayed City, which includes the most famous and most important administrative and commercial projects.

The project includes mixed uses between residential buildings and commercial, administrative and recreational units. The project also includes a medical area with an international hospital, medical clinics, a nursing home, a school and three hotels. It is located in a privileged location next to Nile University and directly overlooks the 26th of July axis and will include a 2 km long river surrounding In the residential area to separate the residential and service part, the project takes into account the smallest details that achieve sustainability and the quality of life for customers.

It is worth noting that Arkan Palm Company obtained the ministerial decision for the "205" project and has begun excavation and ground preparation work, as the company aims to implement an innovative urban project that contributes to achieving an added value for El Sheikh Zayed City and raising the investment value of the area implemented in it.

The area allocated for the first phase of the project is about 56 acres, and the project designs and general plan were prepared through the largest consulting offices (Raef Fahmy Architectural Office (residential units design), El Dahan and Farid Engineering Consulting Office (administrative commercial area).

Gensler company, No. 1 in the world, developed the designs and the master plan for the project, and it has a previous work and international experience. It has developed designs for major real estate projects in various countries of the world and in Egypt. It has also contracted with Savills (Savills International) to take over the project management.

The company also partnered with the Crown Plaza Hotel of the InterContinental Hotels and Resorts Group (IHG) to provide a hotel service for the Canal Walk Island residential area of the "205" project.

Arkan Palm Real Estate Investment Company is an extension of Badr El Din Group, which is one of the leading companies in the field of real estate development, construction and construction, which has a long experience and extends for many years, which resulted in a series of continuous successes in successful projects in selected locations, such as "Arkan" and "Al Karma 1, 2, 3 and 4", followed by other projects such as the expansion of "Arkan", "Mazar Mall" and "Kayan" housing, which were among the first companies that were interested in developing urban communities and building modern residential communities in El Sheikh Zayed and 6th of  October and The group has built and delivered more than 5,000 housing units, managed and operated more than a quarter of a million square meters of commercial and administrative spaces.

The group is keen to develop and enhance all lands to create an added and targeted value from those lands. The group is distinguished by a strong business precedent in the various service real estate sectors, including administrative, commercial, recreational, educational, as well as project management, which motivated many other companies to enter into partnerships with the group.