Bonyan for Development and Trade, Citadel Capital's Platform Company for investments in specialty real estate, has secured remaining funding for the MENA region's first specialized design, furniture and home accessories mall
Bonyan for Development and Trade announced today that it has finalized arrangements for an EGP 185 million syndicated loan to finalize the completion of Designopolis, the first furniture and home accessories mega-mall in the Middle East and North Africa.
Bonyan is a Platform Company of Citadel Capital (CCAP.CA on the Egyptian Stock Exchange), the leading private equity firm in the Middle East and Africa with investments of US$ 8.3 billion under control.
The Commercial International Bank (CIB), is lead arranger for the loan, said Citadel Capital Managing Director Ahmed El Houssieny. Also participating in the transaction are the Housing and Development Bank (EGP 50 million), the Egyptian-Arab Land Bank (EGP 50 million), the Arab Investment Bank (EGP 45 million) and Bank Audi (EGP 40 million).
“Designopolis is backed by a business case robust enough to withstand one of the worst economic downturns in recent history. While the global financial events that unfolded in 2008 and 2009 closed or slowed projects in Egypt and abroad, Designopolis remained on track. In no small way, this achievement was supported by continued enthusiasm from its investors, lenders, retail brand partners and Bonyan’s dedicated management team,” said El Houssieny.
The seven-year loan includes a grace period of two years and a five-year repayment term.
Phase one of the project, located in Sixth of October City, is on track to open in Spring 2010 with major international, regional and local brands as anchor tenants.
“Over the next five to seven years, the satellite cities of Sixth of October and New Cairo are expected to grow to around 3 million people, the size of most major European cities and larger than most of the Gulf states,” said Bonyan Managing Director Nader Lahzi. “Bonyan will be able to capitalize on the highly fragmented industry that now serves the real estate sector.”
“With a successful start at Designopolis West, Bonyan will continue to invest in commercial real estate concepts backed by powerful demographic factors in Egypt and the region,” said El Houssieny.
Bonyan for Development and Trade is a company established by Citadel Capital and a group of co-investors to invest in retail and commercial developments in the Middle East and North Africa. Bonyan’s first project Designopolis, the first furnishings mall and design center in the Middle East and North Africa with showcasing leading domestic and international bands. Located in the Cairo suburb of Sixth of October City, Designopolis West has room for 220 stores. Bonyan is currently studying opportunities to expand the Designopolis brand to other locations within Egypt including Kattameya as well as internationally to Saudi Arabia, Algeria and Morocco, where growth trends support major real estate developments.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders, more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2009, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications,
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
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