CairoHouse, A Groundbreaking Mixed-Use Development: A Catalyst for Reimagining Historic Tahrir Square and Revitalizing Downtown Cairo for Future Investment
OHK's Visionary Concept Realized: International Consortium Secures $200 Million Anchor Project to Transform Downtown Cairo
The transformative redevelopment of Tahrir Square, a project innovatively conceptualized by OHK and presented to the Egyptian government, has reached a significant milestone with its first private investment. A substantial $200 million investment is set to catalyze the transformation of the historic Mogamma el Tahrir Complex into CairoHouse, a modern luxury lifestyle hotel and mixed-use complex. CairoHouse stands as a key component of an ambitious $8 billion initiative, showcasing the extensive vision OHK developed for the rejuvenation of Tahrir Square. This marks the beginning of a 20-year plan aimed at injecting a robust economic engine into Cairo's historic heart, revitalizing the area as a dynamic hub of urban development and progress.
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The consortium selected to execute OHK's concept for transforming the historic Mogamma building into CairoHouse consists of the Chicago-based Oxford Capital Group, Global Ventures Group, and the UAE-based Al Otaiba Investments. This US-led consortium emerged as the winner after a highly competitive bidding process, which drew specialized developers and partners from around the globe, ultimately being one of the three finalists shortlisted for the project. The photo above displays the preliminary design of CairoHouse, conceptualized by the renowned architectural firm RATIO|smdp. Photo provided courtesy of the Egypt Sovereign Fund.
Aligned with Egypt's forward-looking vision, as embodied by the Egypt Sovereign Fund, OHK was commissioned by the European Bank for Reconstruction and Development (EBRD) to devise a master plan for the historic Downtown Cairo. This initiative focuses on identifying redevelopment opportunities, pinpointing valuable government assets, and conceptualizing public-private partnerships. The goal is to repurpose these assets to attract foreign investment and transform Downtown Cairo into a premier historic and tourist destination. This strategic planning underscores a commitment to revitalizing Cairo's downtown area, ensuring its prominence as a cultural and economic landmark.
The redevelopment of Tahrir Square commenced with a comprehensive master plan by OHK, backed by funding from the EBRD. This initial phase included the development of spatial, economic, and design concepts for numerous government assets, leading to the identification of key anchor projects, with the Mogamma building being a prominent highlight. These crucial assets were subsequently transferred to the Egypt Sovereign Fund, which then commissioned Colliers International to conduct a market study. This study aimed to determine the most effective and profitable use of the asset, aligning with the strategic vision to rejuvenate the downtown area. The process then advanced to an international tender to attract leading real estate developers, both international and local. The tender process was marked by intense competition among the participating consortia.
The Metamorphosis of Mogamma el Tahrir, rich in historical significance and architectural transformation, has become so ingrained in Egyptian consciousness that it is simply referred to as 'The Mogamma'. Its narrative unfolds in the late 1850s under the reign of Egypt's Said Pasha (1854-1863), who initiated the construction of barracks on the site to accommodate Egyptian-Ottoman army units. This development led to the demolition of the original Qasr al-Nil, a once palatial building. Later, in 1882, the British army took over these barracks following their invasion, maintaining their hold on the site until their withdrawal from Cairo in 1945. This marked the end of one historical chapter and set the stage for the next significant transformation of the site. The images above provide a glimpse into the early history of the site before 1946. The map featured is the "Plan général de la Ville du Caire" (General Map of Cairo) from 1874, created by P. Grand Bey. This map is part of OHK's extensive archives of Downtown Cairo, which includes over 100 manuscripts collected during the master planning effort in 2016/2017. The lower black and white photo displays the barracks, known at the time as the "Kasr-El-Nil" barracks due to their proximity to the Kasr-El-Nil Bridge. This photo, the earliest known image of the barracks, dates back to 1862 and is provided courtesy of the J.P. Getty Museum. The upper photo is an antique sketch from 1883, depicting the bridge and barracks of Kasr-El-Nil, sourced from the Illustrated London News. The inset map, positioned in the lower right corner of the main map, offers a detailed view of the barracks layout. The barracks' proximity to the Nile and the bridge is indicated within a boxed area on the main map. Source: OHK Archives.
From barracks to bureaucracy, the transformation of Mogamma el Tahrir over three years (1946-1949) resulted in a 14-story administrative hub. Initially envisioned to accommodate 4,000 officials, it eventually became the workplace for more than 30,000 public servants.
Post-1946 Development: Following the departure of the British troops, King Farouk of Egypt ordered the demolition of the barracks in 1945, ushering in a series of urban planning projects. This led to the conception of Mogamma el Tahrir, designed by Egyptian architect Mohamed Kamal Ismail, as a centralized, multi-purpose 14-story administrative building, mirroring the modernist municipal buildings of the US and France. Construction began in 1946 and was completed in 1949. This structure signified a new phase in Egypt's architectural and administrative history, emerging as a symbol of modernity. Over the years, Mogamma el Tahrir has housed various government offices, playing a crucial role in Egypt’s administrative landscape. At one point, the building was the workplace of almost 30,000 Egyptian public servants. The left photo depicts the barracks circa 1930s, and the right photo showcases Mogamma el Tahrir circa 1950s. Source: OHK Archives.
OHK's innovative approach in the redevelopment of Downtown Cairo, utilizing usufruct rights for state-owned assets, sets a groundbreaking precedent. This model will guide The Sovereign Fund of Egypt's future approach to public-private partnerships, ensuring the best returns on assets belonging to the people and entrusted to the fund.
The redevelopment of the Mogamma el Tahrir into the CairoHouse project is poised to advance through a collaborative model involving both The Sovereign Fund of Egypt and the selected consortium. In this joint effort, The Sovereign Fund of Egypt will grant usufruct rights to the building, allowing the consortium to contribute essential capital and oversee the development process. OHK's blueprint for adaptive reuse is pivotal not only for this project but also for establishing a groundbreaking precedent for the redevelopment of numerous other state-owned assets. It's worth noting that this innovative approach avoids selling the assets, a practice OHK advised against, which has previously resulted in the country missing out on potential revenue from holding onto these assets. To our knowledge, this marks the first instance where usufruct rights have been employed in any redevelopment schemes involving government assets. This arrangement permits the developing consortium, as the Mugamma holder (the usufructuary), to use the building, generate income from it for a specified period, and maintain its essential substance. At the end of the usufruct period, the property and any improvements or benefits will revert back to the owner, The Sovereign Fund of Egypt.
The photos above illustrate OHK's proposed transformation of the Nile riverside in Tahrir Square. First, there's "The Egypt Eye," an observation wheel intended to be situated on the left side of the Nile Hilton when viewed from the river (as shown in the left photo). The site became vacant after the demolition of the former National Democratic Party building, which can be seen in the middle photo on the far right with the Nile Hilton on its left (circa 1970s). Additionally, the right photo shows the proximity of the building in its debilitated state following the 2011 Egyptian Revolution and prior to its demolition, in relation to the Museum of Egyptian Antiquities. Source: OHK Archives.
OHK's visionary plans proposed to the Government of Egypt encompass the comprehensive redevelopment of 16 sites in Tahrir Square, expected to bring in $1.5 billion in private investment. These transformative projects include historic and new landmarks from the revitalization of the 1901 Museum of Egyptian Antiquities to the construction of The Egypt Eye, envisaged to be Africa’s tallest cantilevered observation wheel, as well as Egypt’s first inner-city light rail system since the country dismantled its epochal tram network.
In the vicinity of the Mugamma, OHK has meticulously crafted additional plans encompassing the conceptual, spatial, and economic redevelopment of an additional 16 sites and state-owned assets. This transformative endeavor at Tahrir Square extends to the historic 1901 Museum of Egyptian Antiquities, set to undergo a revitalizing transformation following the relocation of a significant portion of its 120,000-item collection to the Grand Egyptian Museum. Furthermore, OHK's plans include the conversion of the former National Democratic Party headquarters, originally designed by Architect Mahmoud Riad, known for creating the iconic Nile Hilton (now the Ritz Carlton). This historic site will be transformed into the Nile-bank OHK-conceptualized Egypt Eye, slated to become North Africa's first rolling wheel attraction. These sites are primed for remarkable transformation and private investment. In total, OHK's ambitious Tahrir Square redevelopment plan represents an investment exceeding $1.5 billion. The project aims to seamlessly integrate with OHK's envisioned Downtown Cairo light rail system—a streetcar or tram network. This transformation aims to create a pedestrian and car-free environment, drawing inspiration from Vienna's Innerstadt revitalization, a model OHK carefully studied to glean valuable insights from.