HHD extends contract to co-develop New Heliopolis land with Sodic
HHD extends contract to co-develop New Heliopolis land with Sodic: State-owned Heliopolis Housing and Development’s (HHD) board of directors agreed yesterday to extend the deadline by 11 months to develop a a 655-feddan plot in New Heliopolis under a 2016 agreement with upmarket real estate developer Sodic, according to a bourse disclosure (pdf). The new deadline is unclear. HHD also signed off on restructuring the EGP 5.01 bn minimum guaranteed revenues from the development, citing the current economic slowdown and its effect on the real estate market.
Background: Sodic and HHD had signed an agreement (pdf) back in 2016 to co-develop the land into a “fully integrated project” with retail, medical, educational, and sports facilities, in addition to 8,600 homes. Under the agreement, Sodic is entitled to 70% of the revenues from homes sold in the development, while the state-owned company will get the remaining 30%. Revenues from commercial and retail sales are split similarly.