April 29, 2010 / 7:07 AM / 8 years ago

UPDATE 1-Orascom Dvt buys stake in Egyptian Resorts

* Orascom to develop Egyptian Resorts land on Red Sea coast

* Signs will develop marina and build residential area

(Adds background, quotes)

CAIRO, April 29 (Reuters) - Swiss-based Orascom Development Holding (ODHN.S)ODHR.CA has bought a 4.5 percent stake in Egyptian Resorts Co. (EGTS.CA) and will help it develop land and a marina along the Red Sea coast, it said on Thursday.

Orascom Development’s subsidiary Orascom Development and Management (ODM) signed a nine year agreement with Egyptian Resorts to develop 2.5 million square metres of Egyptian Resort land at the resort area of Sahl Hasheesh.

“Under this agreement, ODM will act as the development manager and will also market and sell the residential estate units surrounding the marine area, which is considered as one of the pillars of the Red Sea resort of Sahl Hasheesh,” it said.

    In return, ODM will share revenue and profit under the agreement, Orascom said in its statement, sent by email.

    The statement did not say how much Orascom had paid for its stake.

    Egypt’s tourism earnings, which dipped 2.1 percent last year do to the global economic crisis, are set to rise significantly in 2010, the tourism minister said in February. [ID:nLDE6170LB]

    The 42-million-square metre Sahl Hasheesh resort area, 18 km (11 miles) south of Hurghada, has a total 1,577 hotel rooms and 679 real estate units, Orascom said.

    Earlier this month, Egyptian Resorts said Egypt’s Rowad Tourism (ROTO.CA) had sold a stake of roughly 5 percent in Egyptian Resorts. (Reporting by Dina Zayed; Editing by Jon Loades-Carter)

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