Addis Ababa, Ethiopia -Ã‚Â The Chinese construction giant CGC Overseas, in partnership with two other Chinese companies, has finalized a deal to join the upcoming real estate sector in Addis Ababa with an estimated capital of 2 billion birr, The Reporter has learnt.
Together with CGC Overseas, Hansen, which owns a cement factory near Koka, and a third unknown company with a minority share have formed Tsehay Real Estate, already receiving 30,000 sqm for development from the city administration. The Chinese developers have started work on a 20-block real estate village located off the CMC-Meri road, in front of Summit Square.
According to sources, the company has already embarked upon site clearing, and is awaiting the arrival of heavy machinery to start construction. The multi-purpose real estate village, including 14 buildings of 12-storeys or more, will incorporate apartments, malls, recreational centers and office facilities.
The project is expected to be completed within two-and-a-half years, and sources noted that the company does not intend to put the property on the market until 70 percent of the work has been completed. With the construction design work completed in China, sources predict that the village will set the standard for future real estate developers in the capital. The international community living in the capital and diaspora Ethiopians are the target markets, although local buyers will not be excluded.
CGC Overseas is well known in the Ethiopian market for a number of road projects it is carrying out around the nation. Furthermore, in the capital Addis Ababa, CGC is associated with water works, production of construction materials and the giant glass factory located near the Jomo condominium site. Hansom Glass struggled for long time before it announced the start of production early this year.
Similarly, Hansen recently came to the rescue of the Ethiopian government by preparing a new cement factory within five months. At the time, the Ethiopian economy was strained by a serious cement shortage and the firm was praised for responding swiftly to demand by entering the market within a short time period.