Back to the complete issue
Thursday, 20 September 2018

CFLD negotiations over new capital project stumble over profit share

New capital talks stumble on stake split? The New Administrative Capital Company (NACC) and China Fortune Land Development Company (CFLD) are deadlocked on how to go forward with a 14k-feddan city planned for Egypt’s new administrative capital. At the heart of the issue: The Chinese developer wants to a larger-than-initially-agreed stake, NACC Chairman Ahmed Zaki Abdeen said, according to Youm 7. CFLD wants more than 40% of the complex, which is expected to include commercial, industrial, residential and cultural districts, sources close to the matter said, according to the report. The Chinese company is now reviewing options offered to it by the NACC, which is why negotiations have stopped, said Abdeen. Yasser Hashem, managing partner at law firm Zaki Hashem & Partners, which represents CFLD, said in July the Chinese company was ironing out the final details of its contract for the project whose MoU was first signed in 2016.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.