Bonyan Development and Trading Company (BONY.CA), Egypt’s leading independent real estate platform, announces the signing of a new lease agreement for Building 106B, located on Ramses Street Extension in Nasr City, with Kortech, a subsidiary of Hassan Allam Group and a leading Egyptian provider of integrated solutions in the fields of electromechanical engineering (MEP), information technology, data centers, and telecommunications infrastructure. This transaction reflects Bonyan’s continued ability to effectively manage its asset portfolio, maximize asset value, and achieve tangible growth in current rental income.

Under the terms of the lease, Cortec will occupy the entire leasable area of 4,297 square meters, with the lease commencing in May 2026. Cortec will replace the previous tenant, B.Tech, whose lease expires in April 2026. The new lease follows the expiration of a previous agreement based on prevailing rental rates, allowing for repricing in line with current market prices and resulting in a significant improvement in rental yields. The five-year lease enhances cash flow transparency and strengthens the profitability of Banyan's income-generating portfolio.

This contract is part of Bonyan’s broader strategy to repric its Egyptian pound-denominated leases, totaling 15,176 square meters and scheduled for renewal in 2026, representing about 42% of the company’s total Egyptian pound-denominated administrative space revenues.

The successful re-leasing of Building 106B underscores Banyan’s proactive approach to asset management, its disciplined tenant selection process aligned with the company’s strategy and asset nature, and its ability to achieve significant rental increases upon contract renewals. This transaction also reflects Banyan’s focus on making informed leasing decisions that support portfolio performance and enhance long-term value.

Building 106 B is part of Bunyan’s portfolio of strategically located commercial assets, which benefit from strong demand fundamentals and continued interest from high-quality companies.

Managing Director's Comment

"The successful re-lease of Building 106B on improved rental terms, following the expiration of a previous contract that was based on below-market rates, reflects the inherent value of our asset portfolio and confirms the effectiveness of our asset management strategy. Attracting a high-quality tenant like Cortec, a Hassan Allam Group company, highlights our ability to achieve sustainable growth in rental income and enhance long-term cash flow clarity. This transaction confirms Bonyan's position as a leading platform for investing in premium, income-generating commercial real estate in Egypt."

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