Successful housing project in Spain, thanks to investment by Egyptian holding company
In the midst of the housing crisis in Spain and after several episodes of protests throughout the national territory, the II International Conference of Seville City One, inaugurated these days in the Palace of Congresses and Exhibitions of Seville (FIBES), has shown that foreign investors such as the Egyptian business structure EK Holding has been a great success in the capital of southern Spain, responding to social demand.
The Ek Holding Group (Egypt Kuwait Holding Company SAE), founded in 1997 with headquarters in Giza, is an operator-fund manager that was established in Seville a few years ago (now spread throughout Andalusia), with an initial investment of 30 million euros, earmarked for Caralca, a developer of urban land management, real estate development and rental assets.
Spanish-Egyptian relations are at their best, thanks to the facilities provided by the holding company. Thanks to a quarterly reporting system, Egypt monitors the investment.
Rafael Miranda, managing director of Caralca Gestión, explained to this correspondent that, in 2018, the aforementioned Seville firm captured a fund from EK Holding and invested in a business plan, with a roadmap: to create a real estate development company for affordable housing that would expand throughout the autonomous community. ‘The Egyptian fund was key to our growth. Thanks to this fund, we have achieved a position in the market,’ he said.
Miranda also stressed that Caralca, a new generation real estate developer (residential projects, hotels and land for tertiary use), presented this Egyptian holding company with a business project that has been a great success throughout Andalusia.
The construction of new homes has contributed to the conservation of the environment with a reduction in costs for their owners. ‘We have a business plan of 30 million initially, which has allowed us to manage a current turnover of more than 476 million euros in profits,’ he said, noting: ’We have built in the metropolitan area of Seville, Camas, Huelva, Jerez, Malaga, a very safe environment, legally speaking’.
After the real estate crisis, the sector has become more professional. Financial institutions require energy ratings when financing projects. The Administration has done a good job, from the requirement of building regulations and technical codes to the adoption of passive architectural measures that protect buildings.
Rafael Miranda clarified that there are two types of investment in Egypt: families with money, i.e. individual investors, and a listed fund, such as the oil company EK HOLDING, which provides financing for mature capital, emerging growth and consolidation of the industry.
Sevilla City One, a public-private partnership initiative with Metrópolis del Sur, aims to become the benchmark for more efficient urban growth, with the goal of climate neutrality by 2030.
