Abu Dhabi-based investment company Chimera is investing $100 million in Egyptian developer Gemini Global Development for a significant minority equity stake in the company in a bid to support its expansion in the Arab world's most populous country.
The new investment from Chimera will help develop the operations of Gemini, which is a subsidiary of Ora Developers, the two companies said on Monday.
“Through this partnership, Chimera continues to grow and further enhance its global portfolio by investing in a prominent player operating in a high-growth sector in Egypt,” said Syed Shueb, chairman of Chimera.
Set up in 2007, Chimera is part of Abu Dhabi’s Royal Group, which is active in a number of sectors including property, construction, food and beverages, hospitality, aviation and health care.
The group has more than 60 companies under its umbrella and employs 120,000 people.
Cairo-based Ora Developers is owned by Egyptian billionaire Naguib Sawiris and is known for building a number of successful property projects in the North African country, including Zed El Sheikh Zayed, Zed East and Pyramid Hills.
“Since inception, our goal for Ora Developers was to continuously seek opportunities that will help us to expand our offerings to various markets while partnering with leading global investors, contractors and retailers,” Mr Sawiris said.
The Egyptian company is planning to spend at least $1 billion on expanding its presence in African markets over the next five years, Mr Sawiris told The National in an interview last month.
Ora is currently building projects in Grenada, Egypt, Pakistan and Cyprus. The company is also considering plans to expand its presence in Pakistan, where it is developing a large residential project in the capital, Islamabad, that includes commercial facilities and a golf course.
Egypt's property market has been attracting the interest of investors from Gulf countries, who are looking to tap into one of the largest property markets in the Mena region.
Abu Dhabi’s biggest developer Aldar Properties is planning to expand in Egypt and recently received regulatory approval to bid with ADQ for a controlling stake in Egypt’s Sixth of October for Development and Investment Company.
The consortium of Aldar and ADQ, one of the region’s biggest holding companies, intends to buy up to 90 per cent – and a minimum of 51 per cent – of the Egyptian developer's share capital through a mandatory tender offer.