Brief Due Diligence Report for Horizon View Heights’

Complex

 

Development Legitimate Owner El Khayat for Touristic Investment and Real Estate Company (Joint Stock Company)
Complex Brand (Commercial) Name Horizon View Heights
Authorized Representative El Khayat for Touristic Investment and Real Estate Company (Joint Stock Company)
Report Date 22 / September / 2008

 

This due diligence report had been prepared by EdgeBridge Law Firm (Zeiad Yehia and partners), according to the request of Egypt Real for Constructions and Real Estate Investment, and Egyptian Reality Group for Real Estate Investment. It aims to illustrate the legal situation of the project, and verify the legal validity of the project. EdgeBridge Law Firm has prepared this report after perusing the relevant governmental documents which are elucidated in details in the report.

 

 

Legal Facts:

 

A) Legitimate Owner and Deed Evolution:

 

Dated as of the second of the 27th of June, 2007, the Ministry of Tourism of Egypt, Public Institution for Tourism Development, Head of the executive operations office, has issued an assignation resolution holding number (84), dedicating the land plot subject-matter of the project holding brand name (Horizon View Heights) to El Khayat for Touristic Investment and Real Estate Company, by means of direct sale.

 

The land plot's total area amounts to 20,630.789 m².


The official Assignation Resolution had defined the land plot subject-matter of transaction's borders as follows:


Northern Border: Land plot owned by The Public Institution for Tourism Development, joining between points "A" and "B", of length equals to 171, 84 meters.

 

Southern Border: Land plot owned by The Public Institution for Tourism Development, joining between points "D" and "C", of length equals to 171, 78 meters.


Eastern Border: Land plot owned by The Public Institution for Tourism Development, joining between points "B" and "C", of length equals to 120, 16 meters.

 

Western Border: Land plot owned by The Public Institution for Tourism Development, joining between points "A" and "D", of length equals to 120, 16 meters.


The permitted purpose of the aforementioned land plot is to establish a tourism development, according to the engineering drawings approved by Land plot owned by The Public Institution for Tourism Development.

 

 

Purchase Price:

 

The Purchase Price for the entire transaction concluded between The Public Institution for Tourism Development and El Khayat for Touristic Investment and Real Estate Company was set as $ 10 / m² (Ten United States Dollars Per Square Meter).

 

 

B) Developer:

 

Partners (Stage 1):

 

A- Mr. Sherif Mamdouh Abo Samra: Chairman.
B- Mr. Mamdouh Mohammad Abdelrahman: Board Member.
C- Ms. Yasmeen Mamdouh Mohammad: Board Member.


Partners (Stage 2):

 

The abovementioned partners have all parted the company, replaced by the following partners:

 

A- Mr. Magdy Sayed Ahmad Mostafa: Chairman.
B- Mr. Mostafa Ali Abdellateed Khazeena: Board Member.
C- Mr. Basioony Abdellateef Abdel Shafy Abo Khazeena: Board Member.


Partners (Stage 3):

 

Partners have agreed to readjust legal positions, in order to be as follows:

 

A- Mr. Mostafa Ali Abdellateed Khazeena: Chairman.
B- Mr. Magdy Sayed Ahmad Mostafa: Board Member.
C- Mr. Basioony Abdellateef Abdel Shafy Abo Khazeena: Board Member.


It must be clarified that the signature of Mr. Mostafa Ali Abdellateed Khazeena and that of Mr. Magdy Sayed Ahmad Mostafa are needed jointly to validate any treatment against the state, public utilities, banks, and individuals. Consequently both signatures are imperatively required on every sale / usufruct contract the company issues to every purchaser.

 

The company's commercial register validity commences on 02/03/2007 and expires on 19/03/2032.


El Khayat for Touristic Investment and Real Estate Company's licensed capital is equal to EGP 20, 000, 000.00 (Twenty Millions Egyptian Pounds).

 

Issued Capital is equal to EGP 7, 500, 000.00 (Seven Millions and Five Hundred Thousands Egyptian Pounds).

Settled Capital is equal to EGP 1, 875, 00.00 (One Million and Eight Hundred Thousands and Seventy Five Thousands Egyptian Pounds).

 

The partners have officially pledged to settle the sum of EGP 5, 625, 000.00 (Five Millions and Six Hundred Thousands and Twenty Five Thousands Egyptian Pounds).

 

 

C) Building Permission / License:

 

The state, represented in The Public Institution for Tourism Development, has granted the owner the right to establish the residential and hotel project as of September/2007, holding number 9 / 2007. The project's official drawing was adjusted as approved as of 28/11/2007.

 

The project is licensed to be established and operating according to the following table:

 

Building Number Ground Floor Units' Quantity First Floor Units' Quantity Second Floor Units' Quantity Total Units' Quantity Ground Floor's Area in Square Meters
1 2 2 4 8 293 m²
2 2 4 4 10 293 m²
3 2 4 4 10 293 m²
4 2 4 4 10 293 m²
5 2 4 4 10 293 m²
6 2 2 4 8 293 m²
7 2 2 4 8 293 m²
8 2 2 4 8 293 m²
9 2 2 4 8 293 m²
10 2 2 4 8 293 m²
11 2 2 4 8 293 m²
12 Null Null Null Null 909 m²

 

• The total area of building surface is equal to 4132 m².
• The permitted percent for building is equal to 20% of the abovementioned total amount.
• Buildings number 1, 6, and 7 are licensed as residential units, with total of 24 units.
• 2, 3, 4, 5, 8, 9, 10, and 11 are licensed as hotel units, with total of 74 units.
• Total mount of project's units is equal to 98 units.

 

 

D) Taxation:

 

EdgeBridge has perused the Tax ID of the developer, and confirms that is holding number 200-122-177 (Cairo Joint Stock Companies Department). The tax ID had not shown any delayed taxes due on the developer to the government. It also elucidates the official address of the developer's company as
8 Abdelhameed Awad Street,
Area Number (6),
Nasr City,
Cairo,
Egypt.

 

The Tax ID was annulled upon parting of the first set of partners (stage 1) and it had been reactivated according to the official record number (69), and holding the general number (7695).


 

End of report.

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