SELECTED INVESTMENT OPPORTUNITIES PROJECT BRIEFS Disclaimer This document has been prepared on the basis of information publicly available, disclosed by the relevant project owners, third parties or by projects’ advisors through their analysis, none of which has been independently verified nor audited. This document has been prepared solely as a basis for preliminary discussions for the investment opportunities mentioned herein. Any final decision regarding the investment opportunities mentioned herein will require further investigations in particular as regards the legal, accounting, financial or tax aspects. This document reflects prevailing economic, monetary, market, or other conditions as of March 2015 and may require adjustments should such conditions change. In preparing this document, project owners and their advisors have relied upon and assumed the accuracy and completeness of all available information. Therefore, neither the project owners nor their advisors or any of their representatives shall incur any liability as to the accuracy, relevance or completeness of the information contained herein. This document is intended for the exclusive use and benefit of the participants to the Egypt Economic Development Conference. Table of Contents I. AGRICULTURE – PAGE 5 II. HOUSING & UTILITIES – PAGE 8 III. INDUSTRY & MANUFACTURING – PAGE 23 IV. INFORMATION & COMMUNICATION TECHNOLOGIES – PAGE 26 V. OIL, GAS & MINING – PAGE 33 VI. TOURISM – PAGE 43 VII. TRANSPORTATION & LOGISTICS – PAGE 51 VIII. RETAIL – PAGE 59 I. AGRICULTURE Agricultural Wastes Recycling Project High value added agri-waste recycling project endowed with strong government support Overview of the opportunity Project location Project description: creation of an operating company in charge of the collection, grinding and recycling of agriculture wastes Key project metrics: aims to collect 6 million tons of agriculture wastes (out of a total of 17 million tons) yielded from the various crops cultivated across Egypt - Currently, c. 2 million tons of agricultural wastes are collected, mainly by individual traders who suffer from a limited access to financial resources Scalable across Egypt Business model structure: 100% private operating company KEY PROJECT FEATURES - Revenues mainly generated by the sale of the stacked wastes and by a gate fee paid by the Ministry of Environment for five years (in EGP per ton collected). - Production output to be sold to energy intensive industries such as bio-ethanol plants, cement factories and fertilizers Investment costs: c. USD 160 million (EGP 1.2 billion) Expected return: 40% IRR (after tax) on the basis of a 50:50 debt to equity leverage Land plots to be awarded (for lease) by the Ministry for Local Development Provision of financial incentives to ensure attractive returns for private investors (gate fees) GOVERNMENT SUPPORT Ministry of Environment to ensure a smooth process for the allocation of land, permits and licenses Strong local demand from energy intensive industries in a context of increasing domestic energy prices Contact details KEY INVESTMENT Untapped and sizeable market with fragmented players (first mover advantage) NAEEM Financial Investments RATIONALE Omnia Kelig Attractive returns despite limited technological know-how required [email protected] Khaled Safaa Scalable project feasible at the governorate level, or on a nation wide scale [email protected] 5 Land Reclamation Project Concept 7 key agricultural development areas across Egypt Overview of the opportunity Project locations Description: award to the private sector of more than 730,000 feddans of land ready for development of cultivated areas Each land development project will allow investors to pursue alternate activity options: - Planting crops (field crops, winter crops, fodder crops for animal production…) - Planting trees (palm trees, olive trees…) KEY PROJECT FEATURES - Planting medical and aromatic plants Efficient land and permit allocation process (49-year lease) following Cabinet approval Sponsors: Ministry of Agriculture and Land Reclamation, international and bilateral donors Government financing for basic infrastructure: roads and electricity (available), wells, network for irrigation (ongoing or planned construction) Flagship project at the heart of the authorities’ national strategy for the agriculture sector Clear government plan to relocate population in the reclaimed areas and provide services for the development of the areas (education, health and security services) GOVERNMENT Clear incentives (reduced energy price, prolonged lease) awarded to private projects with SUPPORT high social returns, adequate use of water resources and utilization of modern agriculture techniques Contact details Ministry of Agriculture Government commitment to encourage the development of vertically-integrated agro- Dr. Abd El Aziz Sheta businesses to ensure food security [email protected] 6 II. HOUSING & UTILITIES West Cairo City Center Project A prime location in West Cairo to host 30,000 habitants Overview of the opportunity Project location A 8.4 million m² land plot in a strategic location on the Wahat Road in West Cairo Land expected to have a Gross Floor Area (GFA) of 5,146,600 m² to be divided between KEY PROJECT residential, commercial, retail and hospitality developments thus creating a central hub to serve FEATURES the wider Cairo community West Cairo City Center (WCCC) is expected to house c. 30,000 inhabitants and to be developed over a timeframe of 8 years Land Area GFA Usage (‘000 m²) (‘000 m²) Residential 1,113 1,200 West Cairo ENVISIONED LAND Commercial 2,744 2,537 USAGE Services 483 1,068 Open/Green Areas 4,057 342 Total 8,397 5,147 Project Location Project structure Land awarded to a potential bidder that would develop the plot ALTERNATIVE Different land purchase alternatives for investors: either revenue sharing agreement or equity TRANSACTION partnership STRUCTURES In either case, the government is entitled to an upfront fee of USD 150 million, to be deducted from future income stream to be received by the government The development is expected to be centered around a green area that will serve as a cultural, natural and entertainment hub. A wide array of both commercial and residential real estate projects will be Sizeable land plot in one of the most strategic and vibrant neighborhoods, which would offer a undertaken around the core green area. wide array of real estate units Contact details Very strong growth prospects in the Egyptian real estate sector on the back of strong KEY INVESTMENT population growth, increasing number of marriages, and a burgeoning mortgage platform EFG Hermes RATIONALE Rapid and continuous migration to satellite cities, such as West Cairo, will greatly bolster Mostafa El Chiati [email protected] demand for modern real estate solutions in these areas Flexibility to amend and/or change the Project’s preliminary layout and designs Hassan Moussa [email protected] 8 6th of October Urban Oasis An integrated multi-purpose real estate project located in the 6th of October city Overview of the opportunity Project location n Land owned by New Urban Communities s io t th r e ip Location: 6 of October City Authority (NUCA), an agency operating n r c Land area:1,100 Acres under the umbrella of the Ministry of Ow Des Housing, Utilities and Urban Development Financing plan: Equity 35%, debt 20% and Mixed use development self-finance 45% n integrating administrative, e Cost of land to be paid either through la r P u touristic, sports, and t equity contribution or revenue sharing r KEY PROJECT c e u t r s recreational facilities agreement t FEATURES a S M Initial master plan with flexible Key potential shareholders: Ministry of layout and design Housing, real estate developers, construction/contractors Supporting documents n t n io Documents Availability t e d 6 years for infrastructure t c Detailed investor presentation s m u io Total investment cost: USD 3.1 billion t Available r r t deployment s with financial projections e Co s e P including land v n 12 years for full development In Co Process timeline r y t v r g p n l a a p u Unit Value e u u FINANCIAL Milestones M A M J J A S Oc No Dec RETURN IRR % 25.7 Expression SUMMARY of interest Payback Years 8Y & 10M Due Diligence Tender Government incentives for developers to build new homes, and mortgage promotion with Framework Central Bank of Egypt funding support agreement GOVERNMENT Term sheet Enabling infrastructure to be provided by Ministry of Housing with support from relevant SUPPORT government authorities Contact details Preliminary approvals to construct a fully integrated project secured FinCorp Investment Holding SAE Mohamed Salem Growing real estate sector: demand fueled by favorable demographics, persistent supply gap, [email protected] and attractive returns relative to other investments KEY INVESTMENT Growing demand for modern urban communities due to increasing share of middle to upper Ahmed Abdelmoghny RATIONALE classes [email protected] Flexibility to amend and/or change the Project’s preliminary layout and designs 10 Marabet Equestrian & Sport Facilities Complex An equestrian and sports center with real estate development in the suburbs of Cairo Overview of the opportunity Project location Land owned by New Urban n s io t th r Communities Authority (NUCA), an e ip Location: 6 of October City n r agency operating under the umbrella c Land