Egypt's Sixth of October for Development and Investment Company (Sodic) has submitted a non-binding offer to fully acquire Cairo-based developer Madinet Nasr Housing and Development.

Sodic is backed by Aldar Properties, the biggest developer in Abu Dhabi, and ADQ, one of the region’s biggest holding companies.

The potential acquisition will value Egyptian Exchange-listed developer Madinet Nasr at 6.18 billion Egyptian pounds ($328 million), Aldar said on Tuesday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Established in 1959, Madinet Nasr is a major urban community developer in Egypt that is mainly focused in the East Cairo area, where its two flagship projects, Taj City and Sarai, are located. The company has a sizeable land bank for expansion opportunities.

Cairo-based Sodic is one of Egypt’s leading property companies, with residential, commercial and retail projects. The proposed acquisition is in line with Sodic’s strategy to expand its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets “through both organic growth and strategic acquisitions in order to achieve scale and realise synergies”, the stock exchange filing said.

An Abu Dhabi-based consortium, comprising Aldar with 70 per cent and ADQ with 30 per cent, acquired 85.5 per cent of Sodic's shares in December last year for about 6.1bn Egyptian pounds after a successful mandatory tender offer.

Aldar, the developer behind Abu Dhabi's Formula One circuit and other big developments in the emirate, is looking to expand its footprint and asset portfolio. It is also seeking to expand its presence in the property market of the Arab world's most populous nation.

“Aldar has identified Egypt as a priority market for international expansion, driven by a strong belief in the country’s potential and the macroeconomic fundamentals driving the real estate sector,” Talal Al Dhiyebi, Group Chief Executive of Aldar, said at the time when Sodic was acquired.

The Abu Dhabi developer reported a 23 per cent jump in first-quarter profit as revenue climbed on the back of record property sales amid the continued recovery of the UAE’s property market and expansion of its business. Net profit for the three months to the end of March climbed to Dh668m ($181.9m) as revenue rose 31.5 per cent to Dh2.68bn.

Late last month, Alpha Dhabi Holding increased its stake in Aldar Properties to become the parent company of the property developer.