Due Diligence Report for SIERRA Project - Nabq Bay -

Sharm el Sheikh

 

Land Plot Legitimate Owner Nabq Sinai for Hotels Company
Complex Brand (Commercial) Name SIERRA
Authorized Representative Mr. Hosam el Deen Mohammad Ebraheem Ateyya
Report Date 19 / October / 2009

 

 

This due diligence report was prepared by EdgeBridge Law Firm (Zeiad Yehia), according to the request of 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 thirty first of November, 1997, an assignation resolution was issued by the Ministry of Tourism, Public Institution for Tourism Development, Executive Head Office, holding number (171), assigning the land plot in Nabq Bay, with borders defined as will follow, to Nabq Sinai for Hotels Company.


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

 

Of a total area equals to 85257.50 m², and whose boundaries are defined as follows:

 

Northern Boundary: Land plot owned by the Public Entity for Tourism Development, of length equals to 344.80 m.

Southern Boundary: Land plot owned by the Public Entity for Tourism Development (walking passage), of length equals to 354.60 m

Eastern Boundary: Suggested road, of length equals to 240.20 m

Western Boundary: Land plot owned by the Public Entity for Tourism Development (walking passage of width equals to 155 m), of length equals to 240 m

 

The assignation resolution had defined the purpose of the land plot as for establishing a tourism village.

 

 

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:

 

Nabq Sinai for Hotels Company is the project’s official developer. The official engineer / constructor is United Engineers Group (Eng. Wael el Shabasy and Eng. Mohammad el Sayed Ezz el Deen).

 

Nabq Sinai for Hotels Company is a joint stock company established under law number (159) of 1981.

 

The Company is holding commercial register number (300860) issued by the Investment Commercial Registry Office in Cairo, and the serial number of the said company is 761034314.

 

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

 

1- Mr. Hosam el Deen Mohammad Ebraheem Ateyya: Chairman.

2- Mr. Ahmad Tareq Hussein Sokkar: Deputy Chairman.

3- Mr. Hussein Mohammad Gamal el Deen Fahmy: Board Member.

4- Mr. Shereef Hosam el Deen Mohammad Ebraheem Ateyya: Board Member.

5- Mr. Ahmad Hussein Ahmad Abo el Makarem: Board Member and Delegated Member.

 

The commercial register had entitled the Chairman to sign solely on behalf of the company against governmental and non governmental third parties. In addition, it is granted to two of the following board members jointly (Mr. Hosam el Deen Mohammad Ebraheem Ateyya, Mr. Ahmad Tareq Hussein Sokkar, and Mr. Ahmad Hussein Ahmad Abo el Makarem) in the processes of sale, purchase, mortgage, and loan, of any of the company's assets.

 

The Company’s purpose was defined in the commercial register as “Owning, establishing, renting, and administering hotels and tourism villages, marketing tourism entities, establishing and owning a hotel holding the name (SIERRA) within Nabq Bay, Sharm el Sheikh City, South Sinai Governorate, Egypt, of capacity equals to 240 4 star rooms, and to establish and administer 104 residential units. The company has the right to acquire interests, or / and get into partnerships with companies which practice a similar activity, either within the territory of Egypt or abroad. The company has the right to merge with any of the aforementioned companies, purchase the aforementioned companies, or get it attached to the Company.

 

The Company is licensed to operate for 25 years starting from 22 / December / 1996 to 21 / December / 2021.

 

The Company’s headquarters is defined as “27 Hasan Asem street, Zamalek, Quasr el Neel, Cairo, Egypt.”


The Authorized Representative of the project, responsible for dealing with third parties in practice, is the Chairman/ Mr. Hosam el Deen Mohammad Ebraheem Ateyya.

 

C) Building Permission / License:

 

The project’s purpose had been defined as:

 

1- Main Building and Restaurant.
2- Hotel Units of the first phase (two floors).
3- Hotel Units of the second phase (three floors).
4- Commercial Shops.
5- Swimming pool and waterfalls' area.
6- Tennis Courts.
7- Golf Courts in the second phase.
8- Car parking spaces.

 

The official permission was issued by the Ministry of Tourism as of February / 2006, and had obtained an update as of 5 / February / 2006. The official drawing is holding number A10-UE-43.

 

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

 

Building Number Units Number Per Floor Floors Height Area of the Ground Floor
B 8 3 3 m / Floor 440 m²
C 10 3 3 m / Floor 550 m²
D 8 3 3 m / Floor 440 m²
E 8 2 3 m / Floor 440 m²
F 8 2 3 m / Floor 440 m²
G 8 2 3 m / Floor 440 m²
H 6 2 3 m / Floor 330 m²
I 10 2 3 m / Floor 550 m²
J 8 2 3 m / Floor 440 m²
K 6 1 3 m / Floor 330 m²
Total       4400 m²

 

 

D) 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.

Recommended Services