A model of a planned new capital for Egypt (File photo: Reuters)
Egypt's largest listed real estate developer Talaat Mostafa has bought a 500-feddan (acre) plot in Egypt's new administrative capital for 4.4 billion Egyptian pounds ($243.77 million), the company said on Sunday.
Egypt's plan to build a new city 45 km (28 miles) east of Cairo was announced in March 2015 at a Sharm al-Sheikh summit held to attract foreign investors who had pulled back from the country after the 2011 revolt against the government.
The new capital project appeared to have stalled after the primary developer, a United Arab Emirates company, pulled out and a contract to develop government facilities by a Chinese state developer also fell through.
"Talaat Mostafa..has contracted for the purchase of a land plot in the new administrative capital with a total area of 500 feddans (acres), in order to develop and execute an integrated urban project in the style of its other projects over a period of seven years," a company statement on the Cairo bourse said.
About 15 Egyptian companies, including Talaat Mostafa, submitted bids in March to develop land for the capital's first phase of construction, but no official announcement has yet been made for the winning bids.
Sources at the housing ministry told Reuters that Talaat Mostafa had received the land about two weeks ago after it reached an agreement with the administrative capital company.