Orascom Development Egypt (ODE) announced on Thursday that its subsidiary Makadi Heights for Tourism Development Company, the developer of Makadi Heights community located on the Red Sea coast, has accepted the Egyptian Tourism Development Authority's (TDA) request for an additional payment of $5.6 million in return for a new development timeline of eight years for the remaining undeveloped land bank. 

ODE said in a stock exchange statement that Makadi Heights will make a downpayment of $1.1 million, with the remaining $4.5 million to be paid over equal annual installments over 10 years.

According to the statement, the extension of the timeline will allow Makadi Heights to revise the master plan, if necessary, thereby increasing project revenues and profits; extend the period of sales launches, allowing for more escalations and higher total revenues for the project and add more commercial leasable assets to ODE's portfolio and recurring revenue streams, and delivering value creation at scale and pace. 

ODE owns a land bank of more than 50 million square metres, with nearly 28 percent developed or under development.
Makadi Heights is an integrated residential community spread over area of 3.4 million square metres in Hurghada.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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