Waterway to Launch EGP 10bn Real Estate Fund and Build €35m Hotel in Greece

Waterway’s big bet: fund, hotels and a first overseas hotel

Egypt real estate is about to get a new institutional vehicle. The Waterway Developments has announced plans to establish a real estate investment fund worth 10 billion Egyptian pounds (about $190.2 million) in the first half of this year to finance its pipeline, CEO Hossam Hassan told Asharq. That headline move is paired with an aggressive hospitality push at home and abroad, including a recently acquired plot in Greece for a €35 million (about $40.6 million) hotel project.

This is a broad strategic shift from a Cairo-based developer that was founded in 2010 and now wants to transform part of its asset base into a capital-raising engine. The announcement raises important questions for property buyers and investors: how will this fund be structured, what does the hotel roll-out mean for operating returns, and how will Waterway manage the execution risks that have dogged the Egyptian market in recent years? Our analysis examines the firm’s assets, financing plans, operational moves and the implications for the Egypt property market.

Who is Waterway and what exactly do they own?

Waterway is privately owned by businessmen Ahmed El-Sewedy and Hossam Hassan, who hold 62% and 38% stakes respectively. The company says its balance of developed and undeveloped land gives it flexibility to launch residential, commercial and hospitality projects across Egypt’s most active corridors.

Key facts about the company’s asset base:

• Undeveloped land bank: 3.5 million sq. meters — expected to take roughly seven years to develop
• Already developed land: 1.3 million sq. meters, spread across the North Coast and East and West Cairo
• Income-generating leased assets: about 40 billion Egyptian pounds worth of properties that deliver stable recurring returns; these will be placed under the planned fund

White & Case is reportedly working on the fund’s full legal structure. That external legal engagement is a positive sign: it implies the company is aiming for institutional-grade documentation rather than an ad hoc capital raise.

The EGP 10bn fund: purpose, backing and financing mix

Waterway’s planned EGP 10 billion fund is intended to be backed by the company’s already income-producing assets in commercial, administrative and residential segments. The firm has explicitly said leased assets valued at about EGP 40 billion will be transferred into the vehicle to provide a revenue base for investors.

What this means in practice:

• The fund will package existing rental cash flows into a single investment product, which could attract investors seeking steady yield rather than speculative capital gains.
• Bringing assets into a fund can improve transparency and allow Waterway to tap institutional capital such as local and regional funds, sovereign investors or insurance companies.
• The company is also exploring bank financing in a softer interest-rate environment, combining debt with the new equity vehicle to finance new construction.

From an investor perspective, an asset-backed fund can be appealing, but the details matter: the transfer pricing, lease terms, tenant quality and governance provisions will determine the fund’s attractiveness and risk profile. Our advice is to watch the fund prospectus carefully once White & Case completes the structure.

Hospitality push: domestic scale-up and new brand "My Otel"

Waterway has decided to enter hotel operations via a dedicated management subsidiary and to launch a hotel brand called My Otel. The plan is to develop 1,000 hotel rooms over the next five years with total investments of between EGP 15 billion and EGP 20 billion across the North Coast, East and West Cairo.

Current hospitality milestones and commitments:

• First My Otel property opened in July on the North Coast with 60 rooms; the company plans to expand this to 180 rooms by 2027, at a total investment of EGP 2 billion including land.
• Waterway purchased a hotel near the Grand Egyptian Museum with 55 suites for EGP 450 million; it will operate under My Otel Pyramids and is scheduled to open in October 2026.
• Adjacent land for a hotel restaurant was bought for EGP 100 million.
• The group plans at least two hotels in New Cairo’s Fifth Settlement and another near the Administrative Capital.

Hospitality is capital-intensive and operating hotels is different from selling residential units. Execution risk is higher because revenue depends on the operator, occupancy and pricing. Launching a management subsidiary suggests Waterway wants control over operations and margins, but it also exposes the firm to higher operating risk and requires hotel management expertise. For investors, the success of these projects will depend on occupancy rates, average daily rates and operating margins, especially as Waterway expands internationally.

International step: a Greece plot and the challenges of cross-border hotels

Perhaps the most surprising move is Waterway’s purchase of a plot in Greece to develop a 60-room My Otel property with total investments of €35 million. Construction is scheduled to begin this year. This is a first concrete step outside Egypt.

Why this matters:

• Geographic diversification can reduce country-specific risk, but cross-border hotel development adds layers of complexity: local permitting, construction costs denominated in euros, VAT and tax regimes, and local market demand dynamics.
• A €35 million investment for a 60-room hotel implies a high average capital spend per room, which may reflect land costs or a higher-end positioning; the economics will need disciplined revenue projections to reach a stable return.
• Financing, procurement and staffing must be managed against European standards, which typically require different certification and greater regulatory compliance than Egypt.

For buyers and international investors watching Egypt real estate, Greece expansion signals that Waterway seeks to become more than a local developer. That could raise the company’s profile and attract foreign capital, but execution risk is meaningful in first-time cross-border projects.

Pipeline, sales targets and market forecasts

Waterway has set an ambitious sales target for 2026: about EGP 30 billion, a 67% increase from approximately EGP 18 billion in 2025. The company pins this growth on new launches in Sheikh Zayed and New Cairo’s Fifth Settlement.

On pricing, CEO Hossam Hassan forecasts a 15–20% rise in real estate prices in 2026, with a similar increase expected in 2027. He attributes this to rising energy and wage costs. The company also expects that exchange-rate stability and the reopening of imports will spur demand from Gulf buyers.

Key facts to keep in mind:

• The price increases projected are company forecasts, not guarantees. They reflect input-cost inflation more than fundamental demand shifts.
• Waterway has had execution delays in the past due to shortages of materials, exchange rate volatility, import difficulties and the loss of some engineering talent. The CEO says construction quality was maintained despite these issues.
• The company’s land bank gives it optionality, but full-scale development of 3.5 million sq. meters of undeveloped land is a multi-year process; the firm estimates around seven years to develop that inventory.

Healthcare and Upper Egypt: diversification beyond residential and hotels

Waterway is studying entry into healthcare investments, beginning with a specialized women’s and children’s hospital within its W55 project.