Egyptian real estate development company Talaat Moustafa Group (TMG)'s hospitality subsidiary, ICON, has sold a 40.5 percent stake to Abu Dhabi's wealth fund ADQ and its subsidiary ADNEC Group. The undisclosed transaction signifies a significant foreign direct investment in Egypt's tourism and hospitality sector. ADQ and ADNEC will jointly invest through a special purpose vehicle, with 49 percent equity owned by ADQ and 51 percent by ADNEC. This acquisition follows ICON's earlier purchase of a 39 percent stake in Legacy Hotels, including iconic properties like Cairo Marriott Hotel and Sofitel Legend Old Cataract Aswan, as part of Egypt's privatization program. The undisclosed investment will partially deleverage ICON's existing debt, with the remainder funding TMG's acquisition of Legacy Hotels.
The CEO of TMG Holding, expressed enthusiasm about the strategic partnership with ADQ and ADNEC, anticipating substantial growth opportunities in Egypt's tourism sector. TMG achieved noteworthy real estate sales of 93.1 billion Egyptian pounds ($3 billion) in the first nine months of 2023.