Saudi's Alhokair plans to build Egypt shopping mall

Egypt's MNHD approves offer from unit of Saudi retailer to build mall at its Teegan development, east of Cairo
Saudi's Alhokair plans to build Egypt shopping mall
Saudi-nased Alhokair franchises brands such as Zara and Marks and Spencer in the kingdom.
By Reuters
Tue 26 May 2015 07:02 PM

The board of Egypt's Medinet Nasr for Housing and Development (MNHD) has approved an offer from a unit of Saudi Arabian retailer Fawaz Abdulaziz Alhokair to build a mall at MNHD's Teegan development, the firm said on Tuesday.

Under the proposed deal, Alhokair, which franchises brands such as Zara and Marks and Spencer in the kingdom, will own and operate the mall for 50 years before transferring it to MNHD, who in the meantime will receive a share of the mall's revenues.

MNHD said the new mall would have a gross leasable area of 68,500 square metres and would take three years to construct.

"Such deals should help MNHD to significantly improve on its financial performance and balance sheet, enabling it to unlock significant value from its unutilised land bank," Cairo's Naeem Brokerage said in a note.

The Teegan development is located in the east of the Egyptian capital, across from Cairo International Airport, and will ultimately cover 3.5 million square metres.

For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.