Orascom Hotels and Development and its fellow company Red Sea Construction will develop a real estate project in Egypt at a total value of EGP 1.5 billion ($209 million) for Mangrove Real Estate Investment which is owned by business tycoon Ahmed Al-Sweedi.

Orascom said in a statement posted on the Egyptian bourse website on Sunday that it implemented the real estate development agreement concluded in the fourth quarter of 2014, under which Mangrove develops a real estate project consisting of residential units over a 160 thousand sq m land plot in El Gouna city.

This agreement allows Mangrove to sell the units built over 100 thousand sq m.

Orascom will generate EGP 345 million revenues in two phases in 2015.

Red Sea Construction will sign an independent agreement with Mangrove  to undertake the construction works of the project.

Orascom said it reached advanced stages of negotiations with other foreign developers  to build a hotel project over a 600 thousand land plot.  

Photo Credit: Arabianeye-Reuters