Al Ahly Real Estate Development Company, the owner of Arkadia Mall, reached an unfair agreement with ACE Insurance Company regarding receiving 20% of the insurance compensation which is EGP 270 million. Arkadia Shopping Center was looted and burnt out during last year’s revolution.
Hussein Sabbour, chairman of Al Real Estate Development Company, said ACE Insurance Company refused to disburse the compensation after the damage assessment report which says the damage hit the Mall was as a result of a “revolution” and the insured companies did not have coverage against risks of “revolution”.
When the owner of the Shopping Center has threatened to file a lawsuit against the insurer, ACE Insurance Company started to negotiate with the Company and reached an agreement to compensate the company with 20% of the insurance value in exchange of conceding the insurance benefits, he added.
Al Ahly Real Estate Development Company will finalize the renewal of Arkadia Mall by next March with cost of more than EGP 100 million, mostly through self-funds.
Ahmed Nasef, head of burglary and fire insurance sector at ACE Insurance Company, said the company insured Arkadia Mall with value of EGP 280 million.
