Bonyan for Development and Trade (“BONY.CA”), Egypt’s leading independent real estate platform, announces the signing of a new lease agreement for Building 106B, located on the Ramsis Street Extension in Nasr City. The building will be fully leased to Kortech, a subsidiary of Hassan Allam Group and a leading Egyptian provider of turnkey solutions across MEP, IT, data centers and telecom infrastructure. The transaction underscores Bonyan’s continued ability to actively manage its portfolio, enhance asset value, and materially grow recurring rental income.
Under the terms of the new lease agreement, Kortech will occupy the entire gross leasable area of 4,297 SQM, with the lease scheduled to commence in May 2026, following the expiry of B.Tech’s lease in April 2026. The new lease follows the expiry of a previous agreement that reflected rental levels at the time, enabling re-rating in line with current prevailing market levels and an improvement in rental terms. The five-year agreement enhances cash flow visibility and further strengthens the earnings quality of Bonyan’s income-generating portfolio.
The new lease forms part of Bonyan’s broader strategy to reprice 15,176 SQM of EGP-denominated contracts scheduled for renewal in 2026, representing approximately 42% of the Company’s EGP office rental revenue.
The successful re-leasing of Building 106B highlights Bonyan’s proactive asset management approach, disciplined tenant selection, and ability to capture meaningful rental upside upon lease renewal. The transaction further supports the Company’s strategy of optimizing portfolio performance through selective tenant and value-accretive leasing decisions.
Building 106B forms part of Bonyan’s portfolio of strategically located commercial assets, benefiting from strong demand fundamentals and sustained interest from high-quality corporate tenants.
CEO’s Comment
“The successful re-leasing of Building 106B on improved rental terms, following the expiry of a legacy contract with rents locked below prevailing levels, demonstrates the embedded value within our portfolio and the effectiveness of our active asset management strategy. Securing a high-quality tenant such as Kortech, part of the Hassan Allam Group underscores our ability to drive rental growth and enhance long-term cash flow visibility. This transaction further reinforces Bonyan’s position as a leading platform for premium income-generating commercial real estate in Egypt.” Tarek Abdelrahman
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