Talks between Dubai-based real estate giant Emaar Properties and Egyptian officials to develop a 607ha plot in Egypt’s planned New Administrative Capital are believed to have stalled, reported Construction Week.
According to Bloomberg, Ahmed Zaki Abdeen, head of the company tasked with overseeing the construction of the city, said “negotiations have stopped”.
The Emirati company reportedly wanted to buy land at a price below the approximately $195 to $223 per square metre that is “typically sought for the residential development”.
The participation by Dubai’s Emaar, responsible for some of the emirate’s most internationally renowned projects such as the Burj Khalifa, had promised to offer significant clout to the multibillion-dollar project.
A spokesperson for Emaar Misr, the company’s Egypt business, told the news outlet: “Interest in the New Administrative Capital and other land offered by the government is ongoing. These are always subject to long-term negotiations and financial evaluation by all parties.”
The report comes just weeks after negotiations reportedly broke down between Egypt and property developer China Fortune Land Development (CFLD). It was believed that neither party could agree on terms for sharing revenue made from megaproject.
Egyptian authorities wanted 40 percent of the revenue, while Chinese builder CFLD wanted up to a third of the share, according to Khaled Elhusseiny from Egypt’s New Administrative Capital for Urban Development (ACUD).