Hisham Tawfik: “Vacating 7900 Apartments Owned by ‘Real Estate Assets’ to Re-rent and Develop Them”

The Ministry of Public Business Sector announced that it was vacating several buildings it owns in Khedival Cairo in preparation for offering them to the private sector for development. Hisham Tawfik, Minister of Public Business Sector, revealed that the ministry was vacating several apartments owned by Misr Real Estate Asset Management, one of the subsidiaries of the Insurance Holding Company, in preparation for developing them through a public offering or by offering them to a group of qualified investors with a vision for dealing with heritage buildings and a commitment to the fundamentals that must be observed when developing this type of building.

In press statements on the sidelines of the signing of the contract for the development of the Shepheard Hotel earlier this week, Tawfik added that through Misr Real Estate Asset Management, his ministry owns approximately 7900 old-rent apartments in Khedival Cairo. It is working to vacate them through amicable negotiations with tenants and reoffer them for rent as administrative properties at current prices, in order to generate greater financial returns for the state and, more importantly, provide the funding needed to develop the buildings containing the apartments, which have become dilapidated and are at risk of collapse.

He continued, “These buildings are an irreplaceable treasure, and we aim to preserve them for another 200 years. This requires substantial funding, which we will provide through the new rents.” Misr Insurance Holding Company, chaired by Basel El-Hiny, seeks to preserve and develop the historic properties while maintaining their distinctive architectural style, considering them an invaluable treasure. None of the historic assets will be relinquished or sold.

The company’s board of directors developed a plan to benefit from its real estate wealth by making effective use of the land owned by Misr Real Estate Asset Management and establishing projects in partnership with investors and real estate developers. The plan also aims to highlight the historical and civilizational value of Khedival Cairo, create a mechanism for preserving these properties with their distinctive architectural style and maximizing their value, and coordinate with relevant authorities in Egypt and international institutions.

Misr Insurance Holding Company achieved its largest-ever profits during the fiscal year ending 30 June 2019, recording combined net profits of approximately 4 billion Egyptian pounds for Misr Insurance Holding Company and its subsidiaries, representing a growth rate of 22.5% compared with 2017/ 2018.