Egypt's Arabia Group has announced the launch of a joint real estate development venture with Sun Capital, a project that aims to erect a compound housing complex in 6th of October City.

The partnership, expected to yield $1.1 billion in investment value, marks Arabia Group’s first foray into Egypt’s real estate market, as the Saudi-based conglomerate gears to expand its business in the North African region.

The project, situated on 620 acres, covers a residential area of 14,386 units, distributed along with an integrated service area. The developers say that the project will feature phased development and deployment of high-quality infrastructure along with a range of entertainment facilities.

Sun Capital's real estate expertise along with Arabia Group's financial muscle, expand their market reach to deliver high-quality projects to home buyers.

The project is part of the expanding real estate market in Egypt, where developers have been growing to meet the growing demand for housing. According to Colliers' 2021 Outlook Report, Egypt's real estate was the fastest-growing in terms of sales compared to global peers, where sales rose 17 percent annually between 2016 and 2019.

"We believe strongly in the Egyptian market and are excited to join forces with Sun Capital to bring a high-quality development to fruition in 6th of October City," said Fadel Al Ali, Chairman of Arabia Group.

The Sun Capital-Arabia Group partnership project also intends to incorporate features such as an outdoor park, lakes, and tennis courts within the apartment complex.

The first delivery of the project is expected to begin in 2023.