EDGEBRIDGE
LAW FIRM is renowned for thinking "outside the box" often leading to
successful conclusions of the most challenging cases.Due Diligence Report for Palme Royale Residential
Project – New Touristic Centre – Hurghada – Red Sea
- Egypt
| Legitimate Owners |
Nationality: Saudi Citizens. |
| Complex Brand (Commercial) Name | PALME ROYALE |
| Authorized Representative |
Prince: Sa'd ben Abdalla Al Sodeiry Nationality: Saudi Citizen. |
| Report Date | 18 / November / 2009 |
This due diligence report was prepared by EdgeBridge Law Firm (Zeiad Yehia and Partners), according to the request of Estate Alliance of Egypt Ltd. and the request of Egypt Real for Constructions and Real Estate Investment. 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 thereof.
Legal Facts:
A) Legitimate Owners and Deed Evolution:
Dated as of Sunday the thirty-first of July, 1988, a sale contract was concluded between the Red Sea Governorate, and Prince: Abdel Elah ben Abelazeez Al So'oud [FIGURE A]. Via the aforementioned contract a land plot of area equals to 26,000 m², and defined by the following borders:
• Northern Border: Neighbouring land plot, equal in length to 200 m.
• Southern Border: Neighbouring land plot, equal
in length to 70 m.
• Eastern Border: Sea shore, of length equals to
220 m.
• Western Border: Public road, of length equals
to 155 m.
FIGURE [A1-1]
FIGURE [A1-2]
Dated as of Tuesday 13/3/1990 the neighbouring land plot was sold by the government to:
1- Princess: Haya bent Saad ben Abdelmohsen Al Sodeiry.
2- Princess: Masha'el bent Abdelazeez Al So'oud.
3- Princess: Masha'el bent Abdellah ben Abdelazeez Al So'oud.
4- Princess: Bonayya bent Fahd ben Abdellah ben Abdelrahman Al So'oud.
5- Prince: Abdelazeez Abdellah ben Abdelazeez Al So'oud.
The aforementioned land plot was sold to the above purchasers via the sale contract concluded between them and the Red Sea Governorate, dated as of Tuesday 13 / March / 1990. [FIGURE A 2]
The land plot's area is equal to 15,000 m² and its borders were defined as follows:
• Northern Border: Neighbouring land plot, equal in length to 120 m.
• Southern Border: Neighbouring land plot, equal
in length to 80 m.
• Eastern Border: Sea shore, of length equals to
150 m.
• Western Border: Public road, of length equals to 150 m.
FIGURE [A2 - 1]
FIGURE [A2 - 2]
B) Building Permission / License:
According to the sale contract articulated as of Tuesday 13 / March / 1990, the original purpose for the land plot was to construct a private residence, but the Saudi government has communicated with the Egyptian government via the letter dated as of 16 / 2/ 2009, seeking the amendment of purpose for both land plots, in order to be tourism residential units development. [FIGURE B 1]
FIGURE [B 1]
The Egyptian government, represented in the Red Sea governorate, has responded via an official written statement, dated as of 22 / 9 / 2009, with the following context:
"According to the fact that Prince/ Abd el Elah ben Abdelazeez Al So'oud, and Princess/ Haya bent Sa'd Abdelmohsen el Sodeiry, have asked to alter the purpose of their land plots from a private residence to a tourism residential project, the alteration has actually taken place according to the instructions of the Prime Minister of Egypt, and the instructions of the Governor of the Red Sea Governorate. The owners have presented the suggested engineering drawings to the government. The project holds the brand name "Palme Royale", and we state that we have no objections of any kind to issue the required licenses, and issuing the licenses is currently in process. This statement was given to the owners upon their request, with no liability on the City Council." [FIGURE B 2]
FIGURE [B 2]
Prior to the aforementioned statement, a treatment receipt was issued by the government, dated as of 20 / 11 / 2008 as a step to obtain the license.
[FIGURE C 1]
FIGURE [C 1]
The financial payment receipt for inspection is shown as [FIGURE C 2]
FIGURE [C 2]
The required military approvals were successfully obtained, and dated
as of 18 / 12 / 2008, the Ministry of Defense has announced officially
that it has no objections to construct the project. The Ministry of
Defense has elucidated that the project had been approved by all the
security entities, and then requested quick processing by the
governorate to finalize the procedures. [FIGURE D]
FIGURE [D]
C) Authorized Representative:
Dated as of the third of June / 1989, Prince/ Abd el Elah ben Abdelazeez Al So'oud, in the notary public office of Giza, has issued a comprehensive public power of attorney in favor of Prince/ Sa'd ben Abdalla Al Sodeiry, entitling him the right to represent him, administer his properties, sell his properties on his behalf, purchase properties, and take all the legal actions to represent him comprehensively. Hereby Prince/ Sa'd ben Abdalla Al Sodeiry has acquired full authority on the land plot of area equals to 26,000 m² on behalf of Prince/ Abd el Elah ben Abdelazeez Al So'oud. Prince/ Sa'd ben Abdalla Al Sodeiry was also granted the right to assign others to act on his behalf, on behalf of Prince/ Abd el Elah ben Abdelazeez Al So'oud. [FIGURE E]
FIGURE [E 1]
FIGURE [E 2]
FIGURE [E 3]
Prince/ Sa'd ben Abdalla Al Sodeiry has also acquired the right to represent the following owners:
1- Princess: Masha'el bent Abdelazeez Al So'oud.
2- Princess: Masha'el bent Abdellah ben Abdelazeez Al So'oud.
3- Princess: Bonayya bent Fahd ben Abdellah ben Abdelrahman Al So'oud.
4- Prince: Abdelazeez Abdellah ben Abdelazeez Al So'oud.
This right was acquired by virtue of the power of attorney issued in Saudi Arabia holding number 479, which was ratified for signatures by the Egyptian government represented in the Ministry of External Affairs under number 2028 as of 2 / 9 / 1988 [FIGURE F] and has obtained a power of attorney from Princess/ Haya bent Saad ben Abdelmohsen Al Sodeiry, holding number 21504 / 6, issued in Saudi Arabia, and verified for signatures by the Egyptian government, represented in the Ministry of External Affairs, holding number 1089 as of 22 / 11 / 1988. [FIGURE G]
Both powers of attorney have granted Prince/ Sa'd ben Abdalla Al Sodeiry the right to sell the properties they own in Hurghada city on their behalf to third parties. Both powers of attorney had been authenticated in the Ministry of Justice as a final step for international authentication, under number 3149 G [FIGURE H]
FIGURE [F 1]
FIGURE [F 2]
FIGURE [G 1]
FIGURE [G 2]
FIGURE [H]
D) Master Agent:
Dated as of 14/7/2008, Prince/ Sa'd ben Abdalla Al Sodeiry has issued two powers of attorney subjecting the two land plots in favour of Mr. Abdelnaser Abdelshafy Ebraheem Mabrouk entitling the latter to act on the owners' behalf in contracting with real estate agencies to market the project's residential units, and to deal with the government concerning licenses and other administrative issues. [FIGURE I]
Hereby Mr. Abdelnaser Abdelshafy Ebraheem Mabrouk has concluded an
exclusive marketing agreement with Estate Alliance of Egypt Ltd.
The said agreement grants the latter company the sole right to market the project's units. The project's main website is www.palmeroyale.com and the website dedicated for real estate agents' aid and service is www.palmeroyale.info
The Master Agent's website is www.estate-alliance.com
FIGURE [I 1]
FIGURE [I 2]
End of Report.