Urbnlanes Launches 430-Acre Project and Plans EGP 1 Billion Fund

Fadi Emile Abdalla, CEO of Urbnlanes, a subsidiary of Kuwait's Emile Abdalla Investment Group, stated that the Egyptian real estate market is strong, promising, and has become more mature, currently undergoing a filtration phase moving toward the better.

Abdalla revealed that the company acquired a 430-acre land plot on the North Coast, with its project launching next summer. It is a hospitality, residential, touristic, and commercial project comprising a hotel and serviced apartments, noting that coastal areas on the Red Sea and North Coast are the most attractive for investment.

He explained that Kuwait's Emile Abdalla Group intends to launch a real estate investment fund in Egypt named "Tameh" with offerings totaling EGP 1 billion, after receiving an establishment license from the Financial Regulatory Authority (FRA). The fund acquires real estate units from various companies and sells them to clients under a fractional ownership system. Cairo Capital has been appointed as investment manager and Kuwait Finance House as custodian.

Abdalla said that listing on the Egyptian Exchange will not happen before five years, and that the company relies on self-financing without resorting to bank financing due to high interest rates, noting that client default rates do not exceed 2%, more than 30% of clients are from outside Egypt, and the total land portfolio reaches 600 acres.

What do these terms mean?

Real Estate Investment Fund: A financial vehicle that pools investor funds to purchase and manage real estate assets to generate returns for them.

Fractional Ownership: A system where multiple individuals buy shares in a single property and share its returns or usage.

Custodian: A financial entity that holds and oversees fund assets to protect investors' rights.

Self-Financing: Funding a project through the company's own resources without borrowing from banks.