Kuwait Projects Management (KPM) says it will purchase and redevelop a tourism and residential project in the Egyptian resort city of Sharm El-Sheikh at a total investment of $39.5 million, according to media reports.

KPM vice chief executive Dani Khalil told Egyptian news portal Amwal Al Ghad that his company had successfully concluded talks for the purchase of the project. The project encompasses 12 buildings and 28 villas, he added.

It was not immediately clear who the previous owner of the project was.

“We believe in the Egyptian real estate market, which is considered the second biggest market in the region after Saudi Arabia. That is why KPM will inaugurate a new branch in the country within this month,” Khalil told the portal.

Referring to other KPM ventures in Egypt, Khalil said the Kuwaiti company was in talks to execute an 8,000 sqm residential project in Alexandria, Egypt’s second biggest city, and will also negotiate through its Egyptian branch for residential projects in New Cairo’s Fifth Settlement and Sixth of October districts.

KPM, which entered the real estate market in 2000, has projects such as Rawdhat Alsafwa in Saudi Arabia’s Madina, Al Safa Tower in Makkah and Nwaiseb Resort in Kuwait to its credit.