(MENAFN - Khaleej Times) DAMAC Properties has entered into a partnership with the Housing and Development Bank of Egypt. The alliance will see 60 per cent of DAMAC Properties' New Cairo projects transfer to the Housing & Development Bank.
The value of the deal, however was not disclosed.
Speaking to Khaleej Times, vice- president of corporate communications, Niall McLoughlin said this is part of Damac's exploring new options and HDBK will bring great value to the new Cairo project."
He said: "we believe this association will strengthen Damac position in Egypt Property market in the long run.''Under the new partnership, HDB will purchase 60 per cent of DAMAC Properties' development at Hyde Park. This share will then transfer to the management of the newly formed Hyde Park Property Development Company. A board will be formed comprising seven directors - four from HDB and three from DAMAC Properties who will manage the company going forward. DAMAC Properties will retain the remaining 40 per cent of the development.
All relationships with current customers of DAMAC Properties' New Cairo projects will remain unaffected and the brand promise of DAMAC of delivering luxury will not at all be impacted by this association.
Hussain Sajwani, Chairman of DAMAC Holdings, said: "The new strategic alliance between ourselves and HDB for our New Cairo project will bring great value to our customers.''
"The opportunity to work with an organisation whose own commitment to the construction industry is so closely aligned with our own makes sense for both companies.'
Fathi El Sebai, Chairman of the HDB SAE, said: ''As an organisation with a long standing track record in the region, we can assist and support DAMAC Properties in a number of ways that extends well beyond a financial partnership. We are looking forward to working with their team and feel confident that together we can deliver a truly outstanding development at New Cairo."
Other Damac Properties projects in Egypt; Gamsha Bay and Park Avenue at 6th October City remain unaffected by this deal. DAMAC Properties, has five developments across Egypt including Park Avenue,(New Cairo) Hyde Park, Park Avenue, Centre Ville, New Cairo and Ghamsha Bay.