Madinet Masr Signs Extension to its MoU with El Hazek Construction to Reach a Total Investment of EGP 1.7 billion

The cooperation with Al Hazek Construction to build the final phase of Shalya project and Madinet Masr’s new Headquarters in Taj City reflects its new era, values of innovation and sustainability that aligns with its growth and expansion plan

Cairo, 27 November 2023 – Madinet Masr (stock code MASR.CA), one of Egypt’s leading urban community developers, signed an extension to its existing Memorandum of Understanding (MoU) signed in 2022 with El Hazek Construction with EGP 1.5 Billion to reach EGP 1.7 Billion to build the final phase of “Shalya” project and the company’s new headquarters (HQ) in Taj City. The MoU comes as a strategic step that aligns with the company’s expansion strategy, developing its landbank, and reinforcing its prominent presence at the heart of its real estate projects.
Madinet Masr’s new Head Quarters will feature an iconic design which will be an embodiment of innovation and sustainability that characterizes the company’s new vision and milestone for the coming decades. The construction of the new headquarters spans an area of 4 acres and a construction area of 12,000 square meters at an investment cost of EGP 400 million. It includes modern and advanced facilities that meet the needs of the company’s employees and foster creativity for a positive work environment. This historic shift marks a pivotal moment in Madinet Masr’s 64-year legacy, transitioning from its longstanding Nasr City location to become an iconic landmark in Taj City.
On the other hand, the final phase of Shalya project is built on a total area of 3 acres and a construction area of 63,000 square meters with an investment cost of about EGP 607 million. This MoU concludes the construction of the final phase in Shalya project where phase 1 had an investmet cost of 700 million and is expected to be delivered by early 2024 to boost the vastly growing economic performance of Madinet Masr.
The MoU was signed by Eng. Abdallah Sallam, President and CEO of Madinet Masr, and Eng. Mahmoud Yehia Hazek, CEO of El Hazek Construction. Under this memorandum, El Hazek Construction will build the final phase of Shalya and the new HQ of Madinet Masr. Shalya’s final phase is scheduled to be delivered within 15 months, while the HQ is scheduled to be delivered within 17 months.
Commenting on the signing of the MoU, Eng. Abdallah Sallam, President and CEO of Madinet Masr, said: “We are very proud and look forward to a new chapter in Madinet Masr’s history which aligns with our growth plan and expansion strategy. The new HQ is designed to reflect the company’s values, aspiration for continuous growth, excellence, and added value for both the company and its customers, while adhering to environmental sustainability practices. This new milestone comes in line with our strategic leadership vision in the market through providing an innovative and motivating environment for creativity as the new location allows the company to expand its scope of work and deliver its services in a more efficient and effective manner. On the other hand, the construction of the final phase of Shalya in Taj City aligns with our ambitious expansion plan that aims to meet the diverse needs of our customers while adopting the highest standards of quality and sustainability.”
For his part, Eng. Mahmoud Yehia El Hazek, CEO of El Hazek Construction, was pleased to collaborate once again with Madinet Masr as a leader in the Egyptian real estate market, saying: “This collaboration represents a significant milestone for El Hazek Construction in the Egyptian market, following the successful MoU signed to handle the construction work in the final phase of “Shalya” project and the construction of the new HQ in Taj City. This partnership aligns with our company goals, and we look forward to showcasing our ability to provide innovative and efficient construction solutions, while strengthening the longstanding collaboration between both companies.”
Taj City will house Madinet Masr’s new HQ with its strategic location in New Cairo on the ring road within close proximity of Cairo International Airport, and minutes away from East Cairo, and Heliopolis. Developed over an area of 3.5 million square meters, this flagship project infuses the attractive design of residential complexes with the best-in-class facilities, shopping concepts and modern lifestyle, and green landscape.
El Hazek Construction is a privately owned construction company, established under the umbrella of El Hazek Group in 1979 with a successful track record in the construction of touristic, commercial, industrial, residential, and infrastructure projects. Through commitment and unparalleled expertise, El Hazek Construction has managed to build a loyal client base of leading entities who are seeking the highest quality standards.