The revitalization of endangered heritage buildings: A decision-making framework for investment and determining the highest and best use in Egypt

Research aim and objectives

This research was created with the goal of providing a framework for developing heritage assets and criteria for investment in order to help investors, designers, and stakeholders prepare for projects and measure their performance. Identifying the factors that must be taken into consideration when deciding to invest in heritage properties facilitates the decision-making process for the identifying the highest and best use in a property and is essential for stakeholders investing in heritage proving a sustainable investment (Shankland, 1975; Yung and Chan, 2012).

Development process

Asset evaluation

The first stage in the adaptive reuse process is the acquisition stage, when investors and developers start to search for unique properties and assets that suit their scope and development vision. These properties must have a special location that is easily accessible via diverse transportation methods (Brandt, 2006). Also related to the location are the views of the building, the main landmarks, the surrounding activities, and the socioeconomic status of the community (Browne, 2006).

After analyzing the location, the investors start to analyze the building from the inside, considering the available spaces, interior details, areas and heights, and existing services and facilities (Rabun and Kelso, 2009). Furthermore, historical studies and documentation are made to identify the architect, architectural style, ornaments, and features in order to identify the original designs and restore them where applicable, which then creates a unique product and adds value to the asset (NOUH, n.d.). Finally, structural reports are prepared by experts to ensure the building maintains its structural integrity and is worth the investment.

Programs and functions identification

After acquiring the building, the development process starts with its initial step of identifying the spaces within the property that will be developed within the company’s development pipeline.

There are various cases regarding available spaces in adaptive reuse projects: the building could be a standalone building that is completely available and ready to be developed as a whole; the building could have whole floors that are empty and other floors that are rented or owned, as shown in Figure 1; or it could have separate spaces, such as apartments or stores, that are currently available or leased under a contract that is nearing an end. After that, it is required to perform market research to study the feasibility of a project and forecast the expected return on investment (ROI) and return on asset (ROA) to ensure the project’s success. Finally, based on all the aforementioned steps, the suitable component mix is decided, as well as the percentages of all the functions to be added to the asset (Ribera et al., 2020).

Figure 1. Diagram showing development vision and program of Emad El Din building, Cairo.

Source: This figure has been reproduced with permission from Sigma Properties, 2019.

Key: ● Unavailable Spaces ● leased old law (Unavailable) ● available (acquired) ● leased new law (available).

Business model and stakeholder agreements

In this phase, the developers, along with real estate advisors, property management companies, and business developers, start to search for suitable operators to manage and run the projects (Menassa and Baer, 2014). Also, the project usually has an estimated budget that is defined based on the target users, categories of provided services, and types of functions.

Brand and identity creation

In this phase, designers and marketing experts start creating a unique brand for the asset, as well as sub-brands for the available functions, to make it a destination where you can have a unique experience like no other. Part of this brand creation involves the procurement of artworks as shown in Figure 2, photos, and other visual materials that represent the building and portray its identity, which could then be used in websites, social media platforms, and investment and marketing presentations.

Figure 2. Sketch of Avierino building in Alexandria; for potential branding and marketing purposes.

Source: Author, 2022.

Also, the building’s story is highlighted; this story includes the architect, architectural features, and interior and exterior details, all of which play a major role in making the building stand out and deserve special recognition (Abdeen and Ahmed, 2009). Furthermore, restoring lost features, removing transgressions, and preserving existing elements also adds value to the asset (Megahed, 2009).

Design phase

In this phase, the design studio starts working in coordination with the developer on the project’s design concept, showing the proposed style, design, inspiration, and overall look and feel of the space. Also, mood boards and material boards are then proposed, along with renders that help elaborate the proposed design, allowing the investor to have a clear image of what the space will look like after development as shown in Figure 3.

Figure 3. Plans of apartments and studios showing proposed furniture, materials, and finishes in Ouzonnian building, Cairo.

Source: This figure has been reproduced with permission from Sigma Properties, 2021.

After finalizing the designs, the design team starts preparing the drawings package. The drawings include furniture layouts, electromechanical and plumbing (MEP) plans, reflected ceiling plans (RCP), and demolition and addition drawings that illustrate the as-built plans as well as the proposed new design marking the required modifications as shown in Figure 4.

Figure 4. Drawings of floor plans before and after redesign and reuse.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Tendering and contractor selection

In this stage, the design team and the project consultant, representing the investor, coordinate the preparation of the bill of quantities (BOQ) and vendor list based on the data prepared in the design phase to be presented to the contractor or various contractors for cost comparison and selection. During site work, the design team along with the consultant supervise the project and follow-up with the delivery of each phase of site work until the project is successfully delivered.

Operation and evaluation

In the final phase of the development process, following the successful delivery of the project, the operator initiates the pilot phase of the project. In this phase, the operator works on marketing and public outreach; this includes social media campaigns, public events, online advertisement, and other methods that help the project reach its target audience. This phase happens in coordination with the developer, operator, and design team in order to ensure a smooth pilot phase and work on any issues or modifications that might be required. After that, a major evaluation is made to measure the project’s performance in order to perform any optimizations to the project itself and to future projects (Giles, 2005).

Figure 5. Summarized table showing Development process stages and involved stakeholders.

Source: Author, 2022.

Stakeholders identification

Most complicated adaptive reuse challenges require the collaboration of diverse stakeholders with divergent interests to realize mutually gratifying results. Eventually, the identification of important stakeholders and the collaborative rationale that exists between them in a decision-making process will be essential to the effective implementation of any strategy for sustainable development. In the majority of adaptive reuse decision-making scenarios, contradictory views, perspectives, interests, and resources exist among important parties (Aigwi et al., 2019). Therefore, it would be advantageous for all participants in an adaptive reuse decision-making process to understand who the other players are, how their interests are interconnected, and how the collaborative strategy operates (Innes and Booher, 2010; Department of Environment and Heritage, 2004).

Investors

An adaptive reuse project could have investors from the government, the private sector, owners of historic buildings, financing groups, renters, foreign communities, and other developers.

Producers

The producer category includes all the players participating in the production of an adaptive reuse project, which includes the designers, structural engineers, heritage restoration experts, consultants, and contractors.

Operators

Includes local or international brands and chains representing any of the functions in a building; this includes hotels, offices, retail, food and beverage (F&B) chains, or independent entities.

Regulators

The regulator category includes all governmental institutions concerned with the governance of real estate development, laws, and permits. Also, entities that identify heritage assets, regulate their existing states, and approve their redevelopment.

Users

Members of the local community, visitors, original users (current tenants), or prospective tenants comprise this stakeholder category (Bond, 2011).

Comparative analysis

The three case studies are in the Egyptian cities of Alexandria and Cairo, these buildings are located in prime downtown areas and are all of different styles, ages, and in a significantly varying context, this difference was necessary for the analyzed buildings in order to form a realistic perspective regarding the development of downtown areas in developing countries, this includes understanding techniques and solutions utilized in heritage buildings, also the selection of functions based on highest and best use evaluation, and the impact of different factors on the decisions made regarding the Adaptive Reuse project, such as the location, architectural description, surrounding context and community (Haroun et al., 2019). These buildings are privately owned and are currently undergoing development by one of the prominent real estate development companies which specialize in the AR of heritage buildings in Egypt. These buildings are not all listed as heritage since the first two case studies address the Avierino and Little Venice buildings and are both listed in the Alexandria Heritage Catalogue as Type B heritage buildings, and are therefore protected by the government against demolishment under law, the third case study; Ouzonnian building on the other hand is not listed as heritage, nevertheless, this does not neglect its heritage value and significance.

The selection of those buildings is based on several factors, first of all, is their historical and cultural significance in the cities of Alexandria and Cairo, also, the success of those buildings in the implementation of AR projects with a limited scale as pilot projects in those buildings, also the fact that those buildings are in the major cities of Egypt, the capital and the second capital, which makes those buildings a good reflection and indicator on the impact of redeveloping heritage assets in downtown areas of major cities. Finally, those three buildings were selected due to the fact that the researcher has worked in a team on their redevelopment and has hands-on experience in all of the phases of the AR process in those buildings, and therefore has primary sourced data of those projects. The buildings were selected in those two cities also to indicate the difference between those cities and demonstrate how this difference could have an impact on their evaluation (Elsorady, 2011).

The study of the literature and analyzing the development process of the Adaptive Reuse of heritage buildings has assisted the author in establishing the following parameters in order to successfully analyze a property and perform an accurate evaluation to reach a decision regarding the highest and best use and create the optimum mix of activities and components ultimately producing a development model for each property, these parameters are investigated based on importance, from the stakeholders’ perspective, as follows:

Case study 1: Avierino Building

Location

The Avierino building (AVI) is located in downtown Alexandria, Egypt, along Fouad Street, one of the oldest streets and known to be the oldest functioning street in history, previously named the Canopic Way during the Greek era (Serageldin, 2002). The building’s location is very important due to its close proximity to various nodes of the city’s most significant functions and activities, as shown in Figure 6; the building is considered to be located in the business district of the city, where major consulates, banks, museums, educational institutions, logistics companies, and sports facilities such as the Alexandria Stadium are located. Also, it is near the Alexandria port, where the majority of the country’s imports are received (Selim, 2023).

Figure 6. Map of Downtown Alexandria showing the location, main nodes, accessibility routes, parking spaces, and transportation around Avierino Building.

Source: Author, 2022.

Accessibility and legibility

The building is easily accessible via diverse methods of private and public transportation, such as personal vehicles, bikes, buses, microbuses, taxis, trams, and trains. The building is within close proximity to Alexandria Railway Station, which provides direct access from all over the city and other cities as well; it is also located near several tram stations and main roads such as El Horeya Street and El Geish, both known to be the main veins of the city where most, if not all, traffic passes through daily (Selim, 2023). The building has several parking spaces in the surrounding area; these spaces are sufficient to accommodate the building’s users. It is sometimes a bit challenging to find parking spaces during the day due to high traffic, but after rush hour and by night, the area has very low traffic, making it much easier for pedestrians and visitors to explore downtown.

Surrounding context

The building is located in the business district in downtown where consulates, banks, companies, museums, educational institutions, cinemas, antique furniture stores, sports facilities, and cultural attractions such as the Alexandria Opera House are all within proximity, this gives the building significant potential as its location attracts high traffic, this traffic includes businessmen and traders because of the logistics companies and the businessmen association headquarters located within the building; other traffic includes tourists and locals visiting surrounding museums such as the Graeco-roman museum and Alexandria National Museum; also students learning languages at the French, Greek, Russian, Spanish, or Italian cultural centers form a significant number of traffic visiting. Finally, bank employees and consulate representatives are also an important sector of the traffic visiting the building (Awad, 2008; Serageldin, 2002).

Spaces

The building has vast heights and spacious areas all over, whether in the ground floor where the heights are up to 6.2 meters high or on the typical floors, which are 4.2 meters high. Since the building is a reinforced concrete structure, it is flexible for opening spaces with each other to make bigger spaces that could be used for diverse functions such as a restaurant or café in any food and beverage project, a co-working space in office projects, or an open space for events, workshops, educational courses, the arts, and cultural projects.

Architectural description and features

The building was built in 1928 by the Greek architect Petros Nicolas Griparis after being commissioned by the Avierino family, which was known to have been of Italo-Greek origins. The building was designed in a neo-renaissance style and is an exquisite example showcasing the cosmopolitan spirit of Alexandria; the building had tenants from many countries and locals as well, who all lived together in a socially cohesive environment during that time and till this day (Awad, 2008).

The building is comprised of a basement, a ground floor, a mezzanine, and seven typical floors, as well as a roof and a dome at the top, as shown in Figure 7. The building has a mixed structural system combining bearing walls and reinforced concrete. Avierino has a built-up area (BUA) of around 11,000 m² and a floor footprint of 1,350 m². Each typical floor was originally divided into four apartments, but most of them have been connected to each other through a common corridor that circles around the building’s plan (Selim, 2023).

Figure 7. Avierino building from Fouad Street (left) and section showing components (right).

Source: Author, 2021.

Existing services and facilities

The ground floor has retail spaces; an art space is in the basement; offices are on different floors; and residential apartments are on the typical floors. It has two main vertical circulation cores, each housing a staircase and an elevator, each in one of the building’s two sides; each side has two apartments, and both sides are connected with a central service core with an elevator; this core is used for services, cleaning, and maintenance uses.

Available spaces within the property

This parameter defines the available spaces in the building in order to prepare a development program for each building and make the vision clear for investors, designers, and other stakeholders regarding the potential investment opportunities and the types of activities that could be incorporated in the building (Selim, 2023). In Avierino, the basement and ground floor are completely empty, making it a high potential for a commercial, retail, or F&B project. The floors from the first to the fourth all have empty spaces but are not completely empty, so pilot projects such as offices and hospitality could be initiated until more spaces are acquired, as demonstrated in Figure 8.

Figure 8. Axonometric diagram of available/unavailable spaces, and potential acquisitions.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Social and economic analysis

The socio-economic level of the area surrounding Avierino is a mixed one, combining communities from different backgrounds and pay grades in the city, from small to medium entities around the neighboring areas and local businesses and shops, to students and educators from surrounding institutions, all the way to business owners and traders from local antique stores, logistics companies, and banks. The target users and visitors of the building include the local community in downtown, government, banks, and consulates employees and representatives, tourists from foreign countries and other cities in Egypt, and finally, businessmen and merchants visiting the city for commercial purposes (Said, 2016).

Development model

After the detailed analysis of the Avierino building and understanding its location, accessibility, surrounding context, spatial characteristics, architectural features, existing service, availability of spaces, and analyzing the socio-economic status of the area and the local community, the program developers, along with the investors and other stakeholders, formulate a general vision regarding the highest and best use. The analytical process that precedes the decision regarding the most suitable function and component mix is what leads the involved stakeholders to develop a program in which all future projects are going to follow; this program also suits the existing functions and uses already existing in the property and surrounding properties as well, as shown in Figure 9.

Figure 9. Proposed development model for future vision based on the data demonstrated in the axonometric diagram (Figure 8).

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

The development model shown in Figure 9, incorporates the following functions: F&B and retail spaces in the ground floor and rooftop; offices and workspaces in the mezzanine floor up to the third floor; hospitality services in the fourth floor up to the seventh floor; and an art space as an arts and culture function in the basement.

‘Mezzanine Offices and Coworking Spaces’ demonstrated in Figures 10-12, is an example of one of the main uses that have been introduced in the Avierino building as a pilot project to incorporate the function of offices and workspaces and is intended to be one of the brands that could potentially be replicated in other buildings as part of the adaptive reuse strategy (Selim, 2023).

Figure 10. Before and after status of the reception area of the project, the original parquet floors were restored and the existing features where maintained.

Electrical systems were installed in an exposed manner in order to preserve the vast heights of the interior spaces. Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Figure 11. Before and after status of what currently is a Coworking space which was originally an open area used for educational purposes, also an outdoor terrace was introduced and access was created by the steps added through a window in order to maintain the integrity of the building’s structure and original openings.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Figure 12. Before and after photos of what currently is a meeting room; the previous tenant destroyed the original window and created a wall in its place.

Transgressions were removed and a new window replicating the original design was added once again. Source: This figure has been reproduced with permission from Sigma Properties, 2022.

The developed projects have proven financial sustainability and success following a significant duration of over a year and has provided high revenues considering the Return on Investment (ROI) and the Payback Period (PBP), also the projects have provided a noteworthy Return on Asset (ROA) due to their incorporation in Avierino building and since the traffic and visitors of the property have seen an increase; also, the building’s identity and significance have become more vital. The specific figures were not permitted for publishing in this study due to their confidentiality but the data was disclosed to the researcher to analyze the business model.

Case study 2: Little Venice Building

Location

The Little Venice (LV) building is located in a prime waterfront location in downtown Alexandria along El Geish Road; it is the most important and most famous road in Alexandria since it covers the majority of the Mediterranean city’s waterfront and is a critical traffic vein where all types of light transportation methods exist and all of the city’s development and urban sprawl are condensed around due to the road’s importance and its sentimental connection with all citizens of Alexandria, as shown in Figure 13. The building is considered to be located in the historical district of the city, where ancient temples of Egypt previously existed, such as Cleopatra’s Temple, and ancient sites of Roman Egypt. Also, it is near the Alexandria port, where the majority of the country’s imports are received (Serageldin, 2002). The building has a direct view of the waterfront, an area famously known as the Eastern Harbor where Portus Magnus, one of the oldest ports in the world, was built and is now an archeological site with ancient underwater remains of Alexander the Great’s royal fleet (Selim, 2023).

Figure 13. Map of Downtown Alexandria showing the location, main nodes, accessibility routes, parking spaces, and transportation around Little Venice building.

Source: Author, 2022.

Accessibility and legibility

The building is easily accessible via diverse methods of private and public transportation, such as personal vehicles, bikes, buses, microbuses, taxis, trams, and trains. The building is directly located from the front elevation on El Geish Road, and from the opposite side, it is directly facing Raml Station, the first tram station on the main line of Alexandria’s tramway (Selim, 2023). The building has several parking facilities in the surrounding areas within walking distance, with sufficient spaces making it easy to find parking spots at any time of the day except for rush hour, as is the case in downtown in general.

Surrounding context

The building is located in a district that could be described as a historical, recreational, commercial, and touristic district in downtown where public squares, hotels, cinemas, consulates, banks, and major cultural and touristic attractions such as the Alexandria Library famously known as the Bibliotheca Alexandrina, are all within proximity; this gives the building significant potential as its location attracts high traffic, this traffic includes tourists and locals visiting the Alexandria Library for attending cultural events or for educational purposes, or staying for touristic purposes in general looking to stay in a prime waterfront location; also, employees or businessmen visiting the city for business meetings and commerce, or locals visiting for convenient shopping, dining, or going to cinemas and theaters in the area (Serageldin, 2002).

Spaces

The building has considerably high ceilings but limited areas due to structural limitations caused by the building’s design, except for the ground floor, which has open areas and ceilings up to 5.2 meters high. The typical floors are 4.2 meters high, and since the building is a reinforced concrete structure, it is flexible for opening spaces with each other but with certain limitations in order to maintain the building’s structural and architectural integrity.

Architectural description and features

The building was built in 1929 with a unique architectural style combining Neo-Gothic and Venetian elements influenced by the local architecture of Alexandria. It was built by Giacomo Alessandro Loria, an architect born in El Mansourah to a Jewish family from Livorno that settled in Egypt during the time of Mohammed Ali. The building had an exquisite exterior design, making it the best façade of the year in 1929. The building had beautiful mosaic medallions and tiles on its corner towers, each with a unique design (Selim, 2023); it also had Moorish arches with Gothic detailing resembling those of the Palazzo Ducale in Venice, Italy (Awad, 2008).

The building is comprised of a ground floor that is divided on two levels due to the ground’s slope, a mezzanine, and four typical floors, as well as a roof, as shown in Figure 14. The building has a mixed structural system combining bearing walls and reinforced concrete. It has a BUA of around 5,800 m², and each typical floor was originally divided into four apartments.

Figure 14. Exterior design of main façade (left), original façade blueprint (right).

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Existing services and facilities

The building has empty retail spaces on the ground floor, various offices and clinics on different floors, and a hotel on the first and second floors. It has one main vertical circulation core housing a staircase and an elevator and two courts; each court has a service core supplied with a staircase; this core is used for services, cleaning, and maintenance uses.

Available spaces within the property

The ground floor and mezzanine are currently unavailable due to ‘old law’ lease contracts, and from the typical floors, only the second floor is fully available, which could be developed as a hotel due to the building’s prime location and previously existing functions and permits (Selim, 2023); also, a few apartments are available on the third and fourth floors, which could also be developed as part of a hotel project or other hospitality services, as demonstrated in Figure 15.

Figure 15. Axonometric diagram of available, unavailable, and potential acquisitions.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Social and economic analysis

The area surrounding the Little Venice building is similar to Avierino since they are within proximity of each other, meaning that it combines communities from different backgrounds and levels as well. The only difference is that Little Venice’s prime waterfront location gives it a significantly higher potential to attract visitors with a higher economic level and purchasing power in general, so a bigger percentage of hospitality services is required, preferably a boutique hotel, and a higher category of finishes, furniture, materials, and equipment will be required (Said, 2016).

Development model

After the detailed analysis of the Little Venice Building and understanding its location, accessibility, surrounding context, spatial characteristics, architectural features, existing service, availability of spaces, and analyzing the socio-economic status of the area and the local community, the program developers, along with the investors and other stakeholders, formulate a general vision regarding the highest and best use, as shown in Figure 16.

Figure 16. Proposed development model for future vision based on the data demonstrated in the axonometric diagram (Figure 15).

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

The development model incorporates the following functions: F&B on the ground floor and rooftop, and premium hospitality services on the mezzanine floor up to the fourth floor, due to the prime waterfront location of the building.

The ‘Venetian Suites’ project demonstrated in Figure 17, is an example of one of the main uses that have been introduced in the Little Venice building as a pilot project to incorporate the function of hospitality services and, following its substantial success considering the financial aspects as well as the users’ feedback, it is now part of a larger scale hospitality project that could potentially be replicated in other buildings as part of the adaptive reuse strategy (Selim, 2023).

Figure 17. Before and after status shows how the existing elements were preserved such as the wooden doors and windows, and the original roller shutters in order to preserve the building’s identity and unique heritage significance.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

The developed projects have proven financial sustainability and success following the analysis of several pilot projects for a significant duration of over 3 years and has provided valuable insights of demand and potential revenues considering the Return on Investment (ROI) and the Payback Period (PBP), also the potential of a noteworthy Return on Asset (ROA) from their incorporation in Little Venice building and increase in traffic and visitors. Furthermore, the building’s identity and significance would consequently become more vital as evident in Avierino building. The specific figures were not permitted for publishing in this study due to their confidentiality but the data was disclosed to the researcher to analyze the business model.

Case study 3: Ouzonnian Building

Location

Located in downtown Cairo, along Talaat Harb Street, which was previously named Suleiman Pasha Street during the time of Mohammed Ali and renamed in 1954. It is one of the most important streets in downtown Cairo and is considered the main vein connecting Tahrir Square and Talaat Harb Square, as shown in Figure 18. The street was a hub for activities and social interaction among Cairo’s upper class and foreign European communities. The influence of European culture and architecture is still evident and embodied in French neoclassical architecture (Selim, 2023).

Figure 18. Map of Downtown Cairo showing the location, main nodes, accessibility routes, parking spaces, and transportation around Ouzonnian building.

Source: Author, 2022.

Accessibility and legibility

The building is in a prime location considering accessibility, knowing that it is connected directly to the Qasr El Nile Bridge, the 6th of October Bridge, and the Azhar Tunnel and Bridge, connecting downtown to major areas in Cairo. The building’s location is easily accessible via different methods of transportation and through various alternative routes. The building is located within close proximity to metro stations and Ramsis railway station, the most important station to visitors from all around Egypt as the connecting railway trains all stop at Ramsis station and visitors then use other methods of transportation to reach their destinations around Cairo (Selim, 2023). Parking facilities are available directly next to the building, as well as in the surrounding areas such as the Opera garage and the Tahrir garage.

Surrounding context

The building is considered to be in a commercial area, as locals and the majority of traffic visiting the street visit to shop for conveniently priced clothing and other accessories. Other visitors are employees working with governmental institutions, banks, tourism companies, etc. Also due to the building’s close proximity to Tahrir Square, where visitors from all over Egypt and tourists meet, either as a station to commute to and from their cities or visit the Egyptian Museum and other touristic locations. The building is situated next to consulates and multiple governmental institutions; also surrounding the building are hotels, banks, retail stores, restaurants, cinemas, bookstores, offices, educational institutions such as the Greek campus and the American University in Cairo campus, sporting clubs, and cultural magnets such as the Cairo Opera House. Furthermore, the Nile Corniche and tourist attractions such as the Egyptian Museum, Abdeen Palace, Cairo Tower, and many other locations are close to the building (Mubarak, 1989).

Spaces

The Ouzonnian building has a relatively small floor footprint, meaning that its areas will be limited considering functions that require open or large spaces; also, the floors have limited heights due to its modern construction system, unlike Avierino and Little Venice. The ground floor height is up to 4.5 meters, and the typical floors are 3.2 meters high. The building has lower heights, smaller courts, and minimal features; this has an impact on technical and design-related decisions.

Architectural description and features

This building was built by the Egyptian architect Sayed Karim, born in 1911 in Quesna, Egypt. He was a professor of architecture at Cairo University, and he registered the first consulting office in Egypt for architecture and planning in 1939; he also issued the first architecture and arts magazine in Egypt in the same year (Selim, 2023).

The building was recognized as one of the first modern buildings in Egypt and the tallest building in Cairo at that time. It has a reinforced concrete structure system and it is comprised of a ground floor that is connected to a spacious backyard, a mezzanine, seven typical floors, four upper floors with different areas that become smaller every floor, and two final floors with even smaller areas as shown in the building’s images. It has a BUA of around 8,200 m², each typical floor was originally divided to four apartments but some of them have been connected to each other, as demonstrated in Figure 19.

Figure 19. Historical photo of the building (left), section showing components and spaces.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Existing services and facilities

The building was designed to host various functions, with the ground floor containing commercial spaces. The first floor had a restaurant, a dancing hall, and a rotunda that featured an open-air garden. The seven typical floors functioned as apartments and offices, the four upper floors featured a hotel with a private garden, and the top floors housed residential units. Nowadays, the building has retail stores on the ground floor, offices on the mezzanine and first floors, and residential and studio apartments on the typical floors. The building has a central vertical circulation core in its center with three elevators and a staircase, and it has two courts, both of which have a staircase, but only one of them has a service elevator; these service courts were used for services, cleaning, and maintenance (Selim, 2023).

Available spaces within the property

The ground floor has retail stores with old contract rentals; the backyard, on the other hand, is acquired and could be developed as a F&B project; the floors from the first till the fourth are all office spaces; the majority of the spaces are acquired and could be developed as a part of a project. The fifth, seventh, and eighth floors are also not fully acquired, but each floor has available spaces; all are residential spaces (Selim, 2023). The sixth floor is fully available and has been utilized as a pilot for an AirBnB (https://www.airbnb.co.uk) hospitality project that is currently undergoing the extension phase on the tenth through the thirteenth floors, as demonstrated in Figure 20.

Figure 20. Axonometric diagram of available, unavailable, and potential acquisitions.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Social and economic analysis

The area surrounding Ouzonnian is similar to those of Avierino and Little Venice considering their locations in downtown areas, but the fact that Ouzonnian is in Cairo significantly changes the equation, knowing that the traffic in Cairo is much higher, especially tourists, backpackers, artists, and entrepreneurs working on the go. This gives Ouzonnian a higher success rate when considering mixed-use developments in general due to the feasibility of the projects in this area. The expected target users are mostly younger generations of entrepreneurs and travelers looking for a local experience and a conveniently priced stay such as AirBnB and studio apartments. Also, such users would require places to work from, such as private offices and co-working spaces that would be complimented with F&B services to complete the component mix in the building, making it an independent, self-sufficient destination.

Development model

After the detailed analysis of the Ouzonnian Building and understanding the parameters of the property assessment, the program developers, along with the investors and other stakeholders, formulate a general vision regarding the highest and best use, as shown in Figure 21.

Figure 21. Proposed development model for future vision based on the data demonstrated in the axonometric diagram (Figure 20).

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

The development model incorporates the following functions: F&B and retail spaces on the ground floor, fourteenth floor, and rooftop; offices and workspaces on the first floor up to the third floor; and hospitality services on the fourth floor up to the thirteenth floor.

‘Grey Studio Apartments’ demonstrated in Figures 22-24, is an example of one of the main uses that have been introduced in the Ouzonnian building as a pilot project to incorporate the function of hospitality services that resemble AirBnB stays and, following its substantial success considering the financial aspects as well as the users’ feedback, it is now part of a larger scale hospitality concept that could potentially be replicated in other buildings as part of the adaptive reuse strategy (Selim, 2023).

Figure 22. Before and after photos showing how the openings and windows were restored to their original size and look to maintain the harmony of the building’s façade.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Figure 23. Before and after status of one of the units which had original parquet floors, those were restored and reutilized in the space, also another feature that was restored was the original windows and roller shutters.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

Figure 24. The photos above demonstrate the before and after status of one of the studios in the project.

Source: This figure has been reproduced with permission from Sigma Properties, 2022.

The developed projects have proven financial sustainability and success following a significant duration of 2 years and has provided high revenues considering the Return on Investment (ROI) and the Payback Period (PBP), also the projects have provided a noteworthy Return on Asset (ROA) due to their incorporation in Ouzonnian building and since the traffic and visitors of the property have seen an increase; also, the building’s identity and significance have become more vital. The specific figures were not permitted for publishing in this study due to their confidentiality but the data was disclosed to the researcher to analyze the business model.

Application on case studies

As the final step for this evaluative approach, the researcher applies the developed method to the designated case studies in order to apply the four-step decision-making framework as shown in Table 7 to identify the potential functions that could be introduced in each building, as well as the scale, type, and category of each function.

Table 7 demonstrates the outcome of the final step of the evaluation process as an example that could potentially be applied to different buildings and cases in any adaptive reuse project, whether in Egypt or anywhere else. Depending on the building and its context, and the previously described parameters, those parameters form the main framework that any developer or stakeholder could utilize as a guideline for evaluating different buildings and deciding on whether the investment is feasible, in deciding what to invest in considering the building in general and the acquisitions within the building itself, also decide on the possible functions that could be introduced and the scale, type, and category of each of those functions. This evaluation also provides a detailed analysis of any building, as this analysis was the basis on which the researcher performed the final decision-making steps and provides a brief assessment of a building that could be presented to potential investors and other producers.

Throughout this research, the author determines that not all developments are required to incorporate all of the aforementioned components to form a balanced mixed-use development, but some minor functions can always be special and designated to certain destinations and hubs in order to form a healthy fabric on the urban scale and to give each property a certain edge over other properties and developments and also to maintain this cohesive network formed between buildings and each other in an area where functions complete and complement each other, the users could feel that the experience is timeless, doesn’t grow old or obsolete after a short time, and is self-sufficient, and developers always see adaptive reuse as a sustainable investment.

Furthermore, the researcher concludes that in the adaptive reuse industry, the role of different stakeholders such as the designer’s, has grown and evolved into a more holistic, multidisciplinary role that requires major knowledge in various fields; understanding the financial aspects of every project, such as the required budget and feasibility, is of critical importance to ensure a higher success rate for the project (Drivers, 2013). Also, having a basic understanding of the legal aspects of development and acquisition of assets and spaces is important, as it has an impact on decision-making and the selection of functions, which then has an impact on the design approach (Bottero et al., 2019). Finally, property management teachings are fundamental in order to create successful programs, considering each function that was decided to be part of the component mix. All of the aforementioned disciplines have direct implications and influence most, if not all, of the design decisions in the adaptive reuse of heritage buildings and mixed-use developments.