On Tuesday, March 28th, the Sovereign Fund of Egypt (TSFE) announced an agreement for the transformation of Egypt’s former Ministry of Interior located in downtown Cairo into a mixed-use complex. A Developments, an estate developer, will undertake the project valued at EGP 800 million (USD 25.9 million). The complex will comprise office spaces, a university campus for the Business School of Paris (IPAG), a hotel, serviced apartments, technology hubs, and incubators.
Downtown Cairo: The “Paris of the East”
Downtown Cairo was once an active center dubbed the “Paris of the East.” The district’s architecture, inspired by Baron Haussmann’s urban renovation of Paris in 1870, was rebuilt by architects from all over the world. The reconstruction of downtown Cairo, led by Khedive Ismail, was intended to mimic the aesthetics of Haussmann’s Paris and focused on the buildings’ appearance.
Revitalization of Downtown Cairo
The reconstruction of the former Ministry of Interior building is aimed at revitalizing downtown Cairo. The relocation of the country’s ministries to the New Administrative Capital (NAC) has been in the works for the past few months, with some ministries having already moved their headquarters. The NAC, considered a smart city, has a strategic location with easy access to the ring road, the Cairo-Suez road, and the Cairo-Ain El Sokhna road.
The mixed-use complex will include the following facilities:
The complex will comprise modern office spaces for entrepreneurs, start-ups, and established businesses. The office spaces will be equipped with modern facilities and high-speed internet to enable businesses to operate seamlessly.
The Business School of Paris (IPAG) will open a campus in downtown Cairo, offering world-class business education to students. The university will provide a conducive environment for learning and networking, with access to modern facilities and resources.
Hotel and Serviced Apartments
The complex will feature a hotel and serviced apartments to cater to tourists and visitors to the city. The hotel will provide luxury accommodation, while the serviced apartments will offer a home away from home experience.
Technology Hubs and Incubators
The complex will also include technology hubs and incubators to foster innovation and entrepreneurship. The hubs and incubators will provide start-ups with access to resources, mentorship, and funding to enable them to grow and scale their businesses.
A Developments Lease Agreement
A Developments will lease the complex for 25 years and will transform it while sharing the revenue with the property’s landlord, TSFE, who will also receive a fixed rental. The project is expected to generate significant revenue for TSFE, which will be reinvested in other development projects in the country.
Minister of Planning and Economic Development, Hala El Said, on the Project
In the press release, Hala El Said, Minister of Planning and Economic Development, and TSFE’s chairperson, stated,
“This project will redefine the face of downtown Cairo into a unique destination for entrepreneurs and start-ups, as well as young travelers.”
The project is expected to create employment opportunities and attract foreign investment to the country.
The transformation of Egypt’s former Ministry of Interior in downtown Cairo into a mixed-use complex is a significant step towards the revitalization of the district. With A Developments’ plans to lease the complex for 25 years and transform it into office spaces, a university campus, a hotel, serviced apartments, technology hubs, and incubators, the project is expected to bring in significant revenue for both A Developments and the property’s landlord, TSFE.
Moreover, the project aims to attract entrepreneurs, start-ups, and young travelers, which could boost the economy and promote the growth of new businesses in the area. The project is also expected to create job opportunities and contribute to the restoration of the district’s architectural heritage.