O West locks in financing worth EGP 1.5 bn to fast-track construction
O West lands EGP 1.5 bn in funding from CIB: Orascom Development Egypt (ODE) subsidiary Orascom for Real Estate (ORE) has signed a EGP 1.5 bn facility agreement with CIB to partially finance and fast-track construction at its flagship O West project in west Cairo, according to a press release (pdf). The facility will help the developer accelerate delivery of phases at Whyte, Tulwa, Club Residences, Hillside, and the O-Business District, according to the release.
Accelerated construction = early deliveries: The facility will help O West begin delivering units in 1Q 2023 “ahead of our promise to customers,” said Orascom Development Group CFO Ashraf Nessim. The financing was executed independently from ODE, and will give O West an independent capital structure for the acceleration scheme.
O West net sales grew 73.6% to EGP 2.4 bn in the first half of the year, O West CEO Tarek Kamel said, according to a separate press release (pdf). The sales accounted for 51.4% of the company’s total sales for 1H 2022, he added.
Advisors: Our friends at EFG Hermes acted as sole financial advisor, lead manager and sole bookrunner for the transaction, which comes two years after EFG advised ODE on a USD 265 mn multi-currency term loan. MHR & Partners in association with White & Case were legal counsel to ORE.