Cairo – Mubasher: Aur Capital and Wadi Degla Developments have signed an agreement to launch Aur-Wadi Degla Fund to acquire Wadi Degla Real Estate with EGP 2.35 billion.

Aur Capital will contribute to the fund with a 30% share through its investment unit Aur Equity, while Wadi Degla will own the remaining 70% share, Alborsa News reported,

This alliance will result in a huge investment entity with larger capital market share, chairman of Aur Capital Ashraf Salman highlighted.

Salman indicated that Aur Hospitality Investment, which will own all the hotels owned by Arco Egypt, has been established by Aur Capital and Wadi Degla.

The joint venture will also operate resorts with total 6,000 rooms in the coming five years.

For his part, chairman of Wadi Degla Majid Helmy said that the new alliance will raise the company’s capital, accelerate current projects and expansion in the Egyptian market, develop real estate sector, and target new segments and new areas outside Cairo, Ain Sokhna, and the North Coast.

The alliance aims to inject around EGP 10 billion over five years through integration between both companies.