Published On:April 14 2010
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Orascom plans to set up a budget housing project in Iraq
Swiss-based Orascom Development Holding said it plans to start a budget housing project in Iraq after elections as part of its wider push into low-income homes.
The developer, known for building high-end resorts, also aims to start selling homes in a budget project in Romania by the end of the year and is in negotiations for a similar project in Africa, Orascom Development Holding .
Orascom has already agreed with Iraqi officials to construct a budget housing project in Iraq similar to Haram City, a low-income residential project it is building near Cairo.
Sawiris did not specify where in Iraq the project would be, but Egyptian media in February reported the firm was looking at two plots, one in Taji in central Iraq and another in Basra in the south. Each would cover some 9 million square metres.
Iraq is looking for bidders to build 1 million new units, valued at an average $50,000 each, within the next three year.
Orascom hopes to see the first sales from its Romania project before the end of this year.
The project, in which Orascom holds a 70 per cent stake, is expected to offer a total of 33,000 units developed over three equal phases, with the first scheduled to be operational within five years.
Orascom posted a net profit of 138.6 million Swiss francs ($131 million) in 2009, up from 115.6 million in 2008, and said it expected new projects in the United Kingdom, Montenegro, Romania, Switzerland and Morocco to drive future profits.