29 April 2010    

Egyptian Resorts Company (EGX: EGTS.CA), Egypt’s largest master developer of mega resort communities, and Orascom Development Holding (SIX: ODHN:SW) announced today that they have concluded an agreement under which Orascom Development and Management (ODM), a subsidiary of global powerhouse Orascom Development Holding (ODH), will manage the development of the Marina at Sahl Hasheesh. The two companies also confirmed today that ODH has taken a 4.5% equity stake in ERC, underscoring the long-term prospects of their partnership. Under the agreement, ERC will remain the owner of the property, which covers approximately 2.5 million square meters including the Marina, while ODM will market, sell, and manage the development of the Marina and surrounding real estate. ODM will be compensated through a revenue- and profit-sharing scheme; neither party divulged the financial details of the agreement. The nine-year deal will give ERC a consistent revenue and profit stream during the development phase as well as a further recurring revenue stream as the Marina comes online. Sahl Hasheesh is a unique, purpose-built Red Sea destination 18 kilometers south of Hurghada International Airport (approximately 500 kilometers from Cairo). The year-round development, which is approximately two-thirds the size of the island of Manhattan, is renowned for its diving and other sea-side activities and includes a 12.5-kilometer shoreline. “We are absolutely delighted to close this agreement with ODH and have them back on board as shareholders in ERC,” said ERC Chairman Mahmoud Abdallah, noting, “ODH is one of the world’s most experienced marina developers and has developed sea-side destinations in Egypt, the United Arab Emirates, Oman and Morocco as well as inland resort properties in Egypt and Switzerland. We can think of no better partner with whom to build this critical component of Sahl Hasheesh.” “As one of the leading developers in Europe, the Middle East and Africa, we are very choosy about the