Civil, Construction

Credence Hospitality Ltd BVI ("Credence" or the "Group") is an offshore entity which operates through two independent Egyptian holding companies in the hospitality and leisure group; Sindbad Hospitality Development ("Sindbad") and Urbane Hospitality Development ("Urbane"). Sindbad is the holding company for the Group`s hotel and entertainment operations in Hurghada which includes i) Sindbad Aqua Hotel ii) Sindbad Aqua Resort iii) a 4-star resort, Sindbad Beach Resort in addition to 2 submarines and 2 glass scoping boats known as `Quest`. The land for all operations is owned by the group. Urbane is the holding company for the Group`s planned life style hotel and restaurant business in Cairo. The IFC proposed corporate level investment is US$ 20 M to support the Group investment towards upscaling its existing facilities through (i) Completion of the expansion plan in Hurghada by adding rooms; this entails the utilization of part of the rooms currently under operation at the Sindbad Club beach resort and the addition of adjacent standalone buildings to be merged together as a separate hotel name when construction is completed. This new hotel facility will be adjacent to the Sindbad Club beach resort and will have a separate beach. It will also stand across the touristic walk from the Sindbad Aqua hotel and Sindbad Aqua resort. As of IFC`s appraisal construction works were ongoing with 2 buildings` envelopes completed; (ii) Refurbishment of part of the group rooms and hotel facilities in Hurghada to erase the effects of the wearing down; and (iii) Construction of 3 midscale lifestyle hotels in Cairo (the "Project"). The Group has acquired land for one of the lifestyle hotels through private sale. The proposed sites for the other 2 lifestyle hotels in Cairo have not been purchased yet. The Hurghada project procurement and construction will take place between June 2015 and completion is expected by end of 2016. The construction of the new hotel facility in addition to the existing Sindbad club hotels in Hurghada was initiated in 2008 on existing infrastructure provided by the Hurghada municipality.

Egypt