If you consider investing in the new Capital of Egypt, here are the main terms and conditions of the tender documents to be published today (Feb 12, 2017)

The Administrative Capital Company for Urban Development (“ACUD”) will, for the first time, make available today, February 12, 2017, the tender documents inviting investors to submit their technical and financial proposals for investing in the new Capital of Egypt by purchasing and developing fifteen (15) residential plots of land between fifty (50) to five hundred (500) feddan (the “Tender Documents”) noting that the tender opening session will take place on March 5, 2017 at 12noon at the headquarter of ACUD.

According to the Tender Documents, in order for any proposal to be acceptable, it shall meet a number of conditions including, inter alia, the following:

  • the said proposal shall be submitted by a company that is either (i) existing in Egypt, or (i) a under incorporation in Egypt providing that such company shall have business arrangement with any existing Egyptian company and shall be incorporated within not more than one month starting from the date of the Construction Order (the “Company”);
  • the Company’s shareholders shall not include any governmental official;
  • the proposal shall be made in Arabic;
  • the fee quotation shall be in Egyptian Pounds;
  • the implementation period of each project shall be as follows:
  1. three (3) years for the plots of land having a total area between twenty (20) to sixty (60) feddan;
  2. four (4) years for the plots of land having a total area between sixty (60) to two hundred (200) feddan; and
  3. five (5) years for the plots of land having a total area that is more than two hundred (200) feddan.
  • The Purchase Price shall be paid as follows:

A. for the plots of land having a total area up to one hundred and fifty (150) feddan:

  1. twenty (20)% of the Purchase Price to be paid in advance within a month from the date of the relevant Construction Order; and
  2. the remaining amount of the Purchase Price can be paid either in full within three months or in equal instalment for four (4) years plus interest at the rates declared by the Central Bank of Egypt.

B. for the plots of land having a total area more than one hundred and fifty (150) feddan:

  1. fifteen (15)% of the Purchase Price to be paid in advance within a month from the date of the relevant Construction Order; and
  2. the remaining amount of the Purchase Price can be paid either in full within three months or in equal instalment for seven (7) years plus interest at the rates declared by the Central Bank of Egypt.
  • A security shall be submitted along with the proposal in cash or in a form of check or Letter of Guarantee with the following value:
  1. EGP 15,000,000 (fifteen million Egyptian Pounds) for the plots of land having a total area up to sixty (60) feddan;
  2. EGP 25,000,000 (twenty five million Egyptian Pounds) for the plots of land having a total area between sixty (60) to two hundred (200) feddan; and
  3. EGP 40,000,000 (forty million Egyptian Pounds) for the plots of land having a total area that is more than two hundred (200) feddan.
  • Constructions shall be within the following limits:

For residential buildings:

  1. The residential area shall not exceed fifty percent (50%) of the total area;
  2. The constructions area shall not exceed forty five (45%) of the allocated residential area; and
  3. The constructions length shall not exceed seven floors above the ground floor other than the underground parking area.

For residential villas:

  1. The residential area shall not exceed fifty percent (50%) of the total area;
  2. The constructions area shall not exceed forty (40%) of the allocated residential area; and
  3. The constructions length shall not exceed one floor above the ground floor other than the underground parking area.

For services areas (including administrative, commercial, educational, health areas):

  1. all services areas shall be between eight (8) to twelve (12) percent of the project’s total area;
  2. The constructions area shall not exceed forty (40%) of the allocated residential area; and
  3. The constructions area for each type of services shall not exceed thirty percent (30%) of the allocated services area, twenty percent (20%) for social clubs, ten percent (10%) for entertainment areas, five (5%) for sport clubs.