(MENAFN- Daily News Egypt) Sources have revealed that Eagle Hills, a real estate company owned by Emirati businessman Mohamed Alabbar, is in talks with the Sovereign Fund of Egypt to acquire City Edge, a major government-owned real estate company in the Egyptian market. City Edge is the developer of the New El Alamein Towers, a prestigious project on the Mediterranean coast.
The sources, who requested anonymity, said that Eagle Hills is exploring several opportunities in the Egyptian real estate market, especially in the development sector, and that City Edge would enable Alabbar to enter the New El Alamein market, which is one of the government's flagship projects.
The sources added that the negotiations are still in the early stages and have not reached the point of official offers yet. They also said that City Edge is among the additional companies that the government is preparing to offer to strategic investors through the Pre-IPO Fund, which was established by the Sovereign Fund of Egypt to facilitate the process.
The Pre-IPO Fund includes seven companies in various sectors, including the Future Urban Development Company (MEDAR), which is also active in the real estate sector.
Emaar Misr, a subsidiary of Emaar Properties, one of the largest real estate development companies in Dubai, is also affiliated with Alabbar, who chairs the board of directors of Eagle Hills. Eagle Hills is a real estate development company based in Abu Dhabi, with projects in several countries, including the UAE, Bahrain, Oman, Jordan, Morocco, Serbia and Ethiopia, according to its website.
Last August, Emaar Misr launched a new project on the North Coast with an investment cost of EGP 53bn, in partnership with Eagle Hills Egypt. The project, named SOL, covers an area of about 518 feddan and will include 2,500 luxury residential units, as well as commercial and tourist units. The project plan was prepared by international companies specialized in urban and tourism planning, and the necessary licenses are being obtained to start the construction work.
Alabbar said in a previous statement that his company's expansion on the North Coast was motivated by the excellence of the tourism activity and the need for development in line with the government's policies in improving the infrastructure.
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