Due Diligence Report for Maraquia Project -

Nabq Bay - Sharm el Sheikh

 

Land Plot Legitimate Owner Gulf Company for Tourism Development
Complex Brand (Commercial) Name MARAQUIA
Authorized Representative

Mrs. Soad Meshref Mohammad l Mahdy
AND
Mr. Gamal Ahmad Aly Mohammad Ashour
AND

Mr. Mohammad Ahmad Aly Mohammad Ashour
Report Date 18 / August / 2009

 

 

This due diligence report was prepared by EdgeBridge Law Firm (Zeiad Yehia), according to the request of Gulf Company for Tourism Development and Sharm el Sheikh Real Estate Agency. It aims to illustrate the legal situation, and verify the legal validity of the premise. EdgeBridge Law Firm has prepared this report after perusing the relevant governmental documents which are elucidated in details in the report, with no liability on EdgeBridge.

 

Legal Facts:

 

A) Legitimate Owner and Deed Evolution:

 

Dated as of the sixth of December, 2004, an assignation resolution was issued by the Ministry of Tourism, Public Institution for Tourism Development, Executive Head Office, holding number (169), assigning the land plot in Nabq Bay, with borders defined as will follow, to Gulf Company for Tourism Development.


The official resolution had defined the land plot subject-matter of transaction as follows:

 

Of a total area equals to 38408.568 m², and whose boundaries are defined as follows:

 

Northern Boundary: Land plot owned by the Public Entity for Tourism Development, of length equals to 281.54 m.

Southern Boundary: Land plot owned by the Public Entity for Tourism Development, of length equals to 240 m.

Eastern Boundary: Suggested road, of length equals to 180.78 m.

Western Boundary: Land plot owned by the Public Entity for Tourism Development, of length equals to 80.78 m.

 

 

Purchase Price:

 

The Purchase Price for the entire transaction concluded between the government and the aforementioned second party was defined as One United States Dollar (or the equivalent according to the exchange rate in the market) per square meter.

 

 

B) Developer, Official Engineer, Authorized Representative, and Designing Engineer:

 

Gulf Company for Tourism Development is the project’s official developer, and the official engineer. The designing engineer has been defined in the building license as Eng. Sabry Fahmy.

 

Gulf Company for Tourism Development is a joint stock company established under law number (8) of 1997 and law number (95) of 1992.

 

The Company is holding commercial register number (3577) issued by the Investment Commercial Registry Office in Cairo, and the serial number of the said company is 531009568.

 

The commercial register had defined the following persons as authorized representatives for the Company:

 

1- Mrs. Soaad Meshref Mohammad el Mahdy: Chairman.

2- Mr. Gamal Ahmad Aly Mohammad Ashour: Board Delegated Member.

3- Mr. Mohammad Ahmad Aly Mohammad Ashour: Board Member.

 

The commercial register had entitled the Chairman, and delegated members, to sign on behalf of the company, jointly or separately, against third parties. In addition, the board has the right to delegate other members or authorize others in signature.

 

The Company’s purpose was defined in the commercial register as “Establishing and operating a tourism village on area equals to 40,000 m² within Nabq Bay, Sharm el Sheikh City, South Sinai Governorate, Egypt, provided that it has the right to establish and operate a four star hotel of room capacity of 100 units, with all the supplementary services, entertainment units, and infrastructure utilities. Sold units on the land plot shall not exceed 50% of the total of constructed buildings.

 

The Company is licensed to operate for 25 years starting from 23 / August / 2000 to 22 / August / 2025.

 

The Company’s headquarters is defined as “Nabq Tourism Center, Aquaba Bay, Ras Sodr, South Sinai Governorate, Egypt.”

 

The Company’s official branch is defined as “Hadabet Om el Seed, Sharm el Sheikh, South Sinai Governorate, Egypt.”

 

The Authorized Representative of the project, responsible for dealing with third parties in practice, is the delegated board member Mr. Gamal Ahmad Aly Mohammad Ashour.

 

 

Update:

 

The commercial register had been updated to modify authorities and positions. Amendments are elucidated as follows:

 

Chairman: Engineer/ Mohammad Ahmad Aly Ashour.

 

Chairman has the authority to sign on behalf of the Company against third parties, and to sign sales' contracts of the project's units against purchasers.

 

Board Member entitled to sign sales' contracts: Mrs. / Ola Ahmad Aly Ashour.

 

Board Members not entitled to sign sales' contract:

 

1- Mrs. Soaad Meshref Mohammad el Mahdy.
2- Engineer / Gamal Ahmad Aly Mohammad Ashour.
3- Mr. Osama Rashwan Mohammad.

 

 

Building Permission / License:

 

The project’s purpose had been modified and updated from “Services Project” to “Residential Tourism and Services” project.


The official permission was issued by the Ministry of Tourism as of 8 / February / 2007, and had obtained the final approval for purpose’s update as of 7 / May / 2007.

 

The official license / governmental engineering drawing had defined the permitted constructions as follows:

 

Hotel Educational Institution Commercial Mall Medical Center Staff Housing

Hotel Educational

Institution of area equals to 710 m².

 

Permitted floors are as follows:

1- Basement Floor.
2- Ground Floor.
3- First Floor.
4- Second Floor.

Commercial Mall of area

equals to 528 m².

 

Permitted floors are as follows:

1- Basement Floor.
2- Ground Floor.
3- First Floor.
4- Second Floor.

Medical Center of

area equals to 464 m².

 

Permitted floors are as follows:

1- Basement Floor.
2- Ground Floor.
3- First Floor.
4- Second Floor.

Staff Housing Buildings are classified into Type (A),

Type (B) and Type (C).

 

Type (A): Of total area

equals to 172 m² per

building, and constructed

on two buildings.

 

Type (B): Of total area

equals to 172 m² per

building, and contrusted

on 15 buildings.

 

Type (C): Of total area

equals to 204 m² per

building, and contructed

on 1 building.

 

Each of the

abovementioned types is permitted to be built on four floors:

1- Basement Floor.
2- Ground Floor.
3- First Floor.
4- Second Floor.

 

 

Residential Units

Residential Buildings were classified in the governmental building permission as Type (D), and Type (E).

 

Type (D):

Of total area equals to 178 m² per building. The total permitted number of buildings in Type (D) amounts to nine buildings. Each of which is permitted to be built on four floors as follows:

  1. Basement Floor.
  2. Ground Floor.
  3. First Floor.
  4. Second Floor.

 

Type (E):

Of total area equals to 178 m² per building. The total permitted number of buildings in Type (E) amounts to thirty six buildings. Each of which is permitted to be built on four floors as follows:

  1. Basement Floor.
  2. Ground Floor.
  3. First Floor.
  4. Second Floor.

 

 

C) Taxation:


EdgeBridge has perused the Tax ID of the developer. The Tax ID had not shown any delayed taxes due on the developer to the government.

 

End of report.

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