Al-Futtaim Group, owner of Cairo Festival City project, paid administrative fees of about EGP 40 million during the last year and half to the arrangers of EGP 2 billion loan, said Dr. Mohamed Mekawy, general manager of Al-Futtaim Group.
HSBC Bank Egypt, Commercial International Bank (CIB) and Arab African International Bank (AAIB) stated that they will not lend the Group until it reaches a dispute settlement agreement with the government. Therefore, Al-Futtaim Group is forced to pay more than EGP 2 million monthly as administrative fees to the loan arrangers so as to be able to receive the loan immediately after reaching an agreement with the government. Mekawy said the settlement agreement is expected to be concluded within the next few weeks.
The loan will be used to finance the construction of Festival Shopping Center in New Cairo, as part of the Cairo Festival City project executed by Al-Futtaim Group. Festival Center will be established on an area of 298,000 m2 with investment cost estimated at EGP 4.3 billion. The most famous restaurants, brands and stores as well as a large cinema complex will be established in the center. The company has injected EGP 1.5 billion to resume the construction of the project which is destined to be ended by 2013.
