Cairo, Egypt – July 6, 2021 – City Edge Developments signed a partnership agreement with Crédit Agricole Egypt under the umbrella of the middle-class mortgage finance initiative launched by the Central Bank of Egypt (CBE) to offer long-term loans at subsidized interest rate. The agreement was signed by Dr. Mohamed El-Mikawi, CEO of City Edge Developments, and Mr. Walie Lotfy, Deputy Managing Director of Crédit Agricole Egypt, in the presence of senior officials from the company and the bank.
Under this agreement, Crédit Agricole Egypt shall provide City Edge clients with three distinctive mortgage schemes and easy payment terms spread over 20 years. The first scheme covers the units covered by CBE’s mortgage initiatives and includes a down payment of 20% while the second scheme provides mortgages for the units not covered under CBE’s mortgage initiative as per the mortgage finance law and at competitive interest rates. The third scheme serves clients who had already contracted for units but want to resell them in the secondary market.
Dr. Mohamed El-Mikawi, CEO of City Edge Developments, said: “This agreement complements our participation in the mortgage finance initiatives launched by the Central Bank of Egypt for middle-class housing. The agreement would effectively broaden the clients base, thus helping more Egyptians find adequate housing will also push the real estate sector forward, and with it, the national economy and some 100, directly and indirectly, linked industries.”
He added, “There is a real demand for real estate in Egypt across multiple housing segments. But this demand is sometimes hampered by low purchasing power. With this partnership, we seek to bridge the gap between purchasing power and the price of the residential units. In support of Egypt’s Vision 2030, City Edge has always been partaking in mortgage finance initiatives to complement the state’s urbanization efforts and provide decent housing for all Egyptians.”
Mr. Walie Lotfy, Deputy Managing Director of Crédit Agricole Egypt, said: “Our mission is to provide adequate financial solutions that meet customers’ needs, noting that real estate has become one of the most important investment tools. We are working together with City Edge, one of the largest developers in Egypt, to unlock access for more people to mortgage under CBE’s initiatives. The bank’s mortgage portfolio has recorded significant growth since the beginning of the year, across both the bank as well as its subsidiary the Egyptian Housing Finance Company, which is one of the oldest mortgage finance companies in Egypt.”
He added: “The Central Bank of Egypt’s initiative enabled citizens to own suitable housing units and pay following easy installment schemes up to 20 years at subsidized interest rates. This also comes in line with the presidential initiative to provide citizens with healthy and suitable housing.”
In 2020, City Edge recorded contractual sales amounting to EGP 11 bn, with profit growth of about 36% over 2019, despite the challenges brought about by the Covid-19 pandemic. This year, City Edge eyes contractual sales of EGP 16 bn, including EGP 8 bn from the company’s projects in New Alamein, EGP 3 bn from Maspero Towers, EGP 3 bn from AlMaqsad project in the New Administrative Capital, and EGP 2 bn from other projects.
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