ECRED expansion

hold

   The proposed investment consists of a US$135 million in A Loan, of which $45 million is to finance the retail property business of Egyptian Center for Real Estate Development, SAE, Egypt (“ECRED” or “the company”) - wholly owned by Fawaz Al Hokair, Salman AlHokair and Abdumajid AlHokair (“Sponsors”). In addition, the investment will also consist of a US$90 million loan to Saudi FAS Holding Company, KSA (Saudi FAS) to refinance its existing contribution in ECRED for Phases 1 and 2 of Mall of Arabia in Egypt. Saudi FAS is also fully owned by the Sponsors. The proceeds from IFC investment will be used to develop four malls in Egypt together with related infrastructure (the “project”):  No.ProjectLand Area m2Built Area m2FloorsParking Area m2Lawn Aream2Status1Mall of Arabia in West Cairo621,400227,2001.5208,400182,000Undergoing renovations in key areas2Mall of Tanta in Tanta122,00056,000163,0003,000Operations started in 3Q19 with some construction outflows pending3Mall of Kattameya in East Cairo273,000120,0001130,00023,000Under Construction4Mall of Mansoura in Mansoura196,00080,0001.573,00020,000Land obtained, Design underway Related Infrastructure Development: As part of the project costs, the company has supported the development of public infrastructure and utilities necessary for the project. All such infrastructure development activities were paid for by the company but were/are being carried out by the relevant government entities, on the public lands. This includes:-          Mall of Arabia: 4 km long electric transmission line, 50 m long water supply line, 50 m long sewage connection, 1 long km gas pipeline, 1 km long connection for telephone network. All infrastructure development completed by 2011. -          Mall of Tanta: 2.5 km electric transmission line, 4 km long water supply line, 4 km long sewage line, 3 km long piped gas network, 1 km telephone line and upgrade of 2 km long access road including road widening and street lighting. All of these infrastructure activities have been completed. However the government is still undertaking construction works on the remainder of the access road between the coastal road and the Tanta Kotour Road, estimated at an additional 2 km, which is expected to be completed by December 2020. -          Mall of Kattameya (still under construction): 10 km long electric transmission line, 2 km long piped water connection, 3 km long sewage network connection, 8.5 km long gas pipeline, telephone line connection and upgrade of existing Mohamed Naguib Bridge in New Cairo city area (about 2 km away from the project site), including street lighting and flyover U- Turn for easy access and traffic flow to the mall from city center area of New Cairo. All these infrastructure activities are still to be constructed, except for the bridges which are already completed.