LONDON: Egypt’s The Waterway Developments plans to establish a real estate investment fund worth 10 billion Egyptian pounds ($190.2 million) in the first half of this year to help finance its project spending, CEO Hossam Hassan told Asharq.
The planned fund will be backed by income-generating real estate assets owned by the company across commercial, administrative, and residential segments, Hassan said, adding that the firm holds leased assets worth about 40 billion pounds that generate stable, recurring returns and will be placed under the fund.
Founded in 2010, Waterway is owned by businessmen Ahmed El-Sewedy, who holds a 62 percent stake, and Hossam Hassan, who owns 38 percent.
The company’s land portfolio spans about 3.5 million sq. meters of undeveloped land, which is expected to take seven years to develop, in addition to 1.3 million sq. meters already developed, distributed across the North Coast and East and West Cairo.
The firm’s CEO explained that White & Case is currently developing the full structure of the fund. The company is also exploring a range of financing mechanisms and, amid a declining interest rate environment, plans to secure bank financing this year, in addition to the expected funding from the planned real estate fund.
Hotel plans and new brands
Hassan said the business aims to develop 1,000 hotel rooms over the next five years, with investments ranging between 15 billion and 20 billion pounds, across the North Coast and East and West Cairo.
He added that the company has also decided to enter the hotel sector through a dedicated management subsidiary and plans to launch a new brand under the name “My Otel.”
The Waterway opened its first hotel on the North Coast in July with 60 rooms, with plans to expand to 180 rooms by 2027 at a total investment of 2 billion pounds, including land value.
The business has also acquired a hotel near the Grand Egyptian Museum with 55 suites at an investment of 450 million pounds. The property will operate under the name “My Otel Pyramids.”
In addition, it purchased adjacent land to develop a hotel restaurant at a cost of 100 million pounds, with both the hotel and restaurant set to open in October 2026.
“We also plan to develop two hotels in the Fifth Settlement and another near the Administrative Capital,” said Hassan.
Expansion outside Egypt
Hassan said the company has acquired a plot of land in Greece to develop a hotel with 60 rooms under the
“My Otel” brand, with total investments of €35 million ($40.6), and plans to begin construction this year.
Entering medical investment
The company’s CEO told Asharq that the group is studying entry into the healthcare investment sector through the development of specialized hospitals, starting with a women’s and children’s healthcare hospital within the “W55” project, with a capacity of 60 rooms.
The firm is currently assessing the investment cost in preparation for construction to begin in 2027, alongside establishing a dedicated company to manage the healthcare operations.
Price increase expected
The CEO expects 2026 to be better than last year for the real estate sector, supported by exchange rate stability, the availability of raw materials, and the reopening of imports, which has contributed to price stability and increased demand from Gulf countries for property purchases.
He also projected that real estate prices will rise by between 15 percent and 20 percent this year, with a similar increase in 2027, driven by higher energy and wage costs.
The company is targeting sales of about 30 billion pounds this year, up 67 percent from around 18 billion pounds in 2025, supported by new project launches in Sheikh Zayed and New Cairo’s Fifth Settlement.
The firm had previously faced delays in project execution due to shortages of materials, exchange rate volatility, import challenges and the departure of some engineering talent, but maintained construction quality, Hassan said.
The Waterway is studying opportunities to develop land in Upper Egypt between Assiut and Minya, focusing on smaller plots in prime locations, with a preference for partnering with the state to create job opportunities and services in the regions, according to Hassan.
