By: Sarah A.
Egypt is rich with so much architectural history, but unfortunately, over the decades many of these masterpieces were left to crumble around the city.
Egypt’s government just announced, they may be turning over 150 historical buildings to the private sector to help refurbish these old neglected buildings, which can then be leased out for a profit. The aim is to revitalize the cities image but also direct more tourism to districts like Cairo, Alexandria, the Suez Canal, and Port Said.
The country is notoriously known for its old rent-controlled units, in which rented out properties get handed down from generation to generation, without the landowner actually being able to raise the prices of the rent due to old laws. Thus, leading to a lack of funding and maintenance for these old majestic buildings.
The Public Enterprise Minister Hesham Tawfik elaborated that the government will be following the same business model as, Al Ismaelia for Real Estate Investment company who have slowly been renovating up to 23 buildings in the heart of Cairo. Tawfik stated, “They take the buildings, they settle with individuals or companies who are renting these apartments, they do the necessary renovations, inside and outside, and they simply rent them to the private sector. And they are making some decent return on their investment,”
The plan also consists of selling close to 2 million square meters of unused land such as National Investment Bank, Ministry of Petroleum, the Ministry of Electricity, pension funds and the tax authority, in an effort to pay back Egypt’s tremendous debt. After that, extra proceeds will aid restructuring ministry plans such textile, chemical and metallurgical industry, Tawifk told the source.