The CEO of the Sovereign Fund of Egypt, Ayman Mohamed Suleiman, announced that the fund is finalizing a master plan for the renewal of historic downtown Cairo. This comes after a significant number of government ministries moved to the new administrative capital east of Cairo, and he hopes to commence the project within months. The downtown area was designed to resemble Paris in the 1860s and is filled with elegant buildings, yet it suffers from neglect. Many of these buildings were nationalized in the 1950s and 1960s and were left without maintenance.
The fund has already taken control of three key properties in downtown Cairo and received ownership of 11 former government buildings through a decree published this week in the official gazette. It also oversees the real estate portfolio of the Misr Insurance Holding Company, which includes around 100 buildings, most of which were constructed before World War II. Suleiman told Reuters that the plan includes the government district located at the southern edge of downtown, involving traffic plans, area surveys, and strategies for the adaptive reuse of various buildings for other purposes. The fund aims to attract private companies to own and finance many of these properties.
The European Bank for Reconstruction and Development, along with two international consultants, is assisting in preparing this plan. Suleiman indicated that the plan would be revealed "in the coming weeks."
*From the Old Capital to the New Capital*
A significant portion of the government has moved in recent months to ministries and offices in the new, sleek capital being built 45 kilometers east of Cairo. The fund anticipates acquiring many former government buildings either for sale, management on behalf of the government, or passing them to private developers in exchange for a minority equity stake in the projects. Suleiman stated, "Some buildings have already been vacated, but there is a mobilization plan for those who are not moving to the new capital to transition to concentrated locations."
The plan will curb certain activities, such as warehouses and storage, while promoting others like tourism. It mandates preserving architectural styles within the permitting system, creating pedestrian areas on weekends, and establishing parking spaces at less aesthetically pleasing building sites. Suleiman remarked that fieldwork would likely begin "in the first half of this year," adding, "We have finished the paperwork, and from now on, you will see implementation on the ground."
*Vacated Properties*
The three properties that have been vacated and handed over to the fund include the once-infamous bureaucratic hub, the Tahrir Complex, the Ministry of Interior complex, and a vacant lot overlooking the Nile that was once the headquarters of the former National Democratic Party. The party’s headquarters was burned down during the 2011 uprising and subsequently demolished.
These three buildings will be repurposed for various uses, including office spaces, residential apartments, and for entertainment and hospitality purposes. Work on the exterior of the Tahrir Complex is currently underway following internal renovations. The sprawling former Ministry of Interior complex is being transformed into a business hub for startups and for tourism purposes. Suleiman stated that the project will include a three-star Moxy hotel, part of the Marriott group, marking the first of its kind in Egypt.
