Damac Properties has announced that it has divested 60% stake in its New Cairo projects to Egypt's Housing and Development Bank (HDB).

The sources said that Damac at present is having  Hyde Park, Park Avenue and Centre Ville projects in New Cairo. Last week the Dubai-based developer has given a construction contract to Egyptian Union for Construction (El Hazek) for 275 villas within Hyde Park.

Meanwhile, HDB and two other firms have secured Egyptian Government sanction to purchase 60 per cent of Damac's Egypt unit.

The sources said that HDB will acquire 30% of the arm, the Egyptian Arab Land Bank 20 per cent and a holding company 10 per cent.

HDB announced in February it was performing due diligence to buy the stake.