Sixth of October for Development and Investment (SODIC) is planning to finish Caeser project in the North Coast of Egypt by August 2018, as the Egyptian developer mulls expansion outside Cairo, according to managing director and board member Maged Sherif.
“The project value including land cost is almost EGP 900m,” Sherif told Daily News Egypt.
Sherif confirmed that the project unit’s prices haven’t been affected by currency flotation, as all units were sold as soon as the project was offered.
“We are in a very healthy cash position and are continuously exploring land opportunities. We will continue to secure land in the east and west of Cairo either through the government or the secondary market,” he added.
He also noted that the company will continue to look for new opportunities in coastal and secondary cities.
“We have very successfully launched our first project, Caesar, in Egypt’s North Coast, and we look forward to securing more land in that area as well as on Egypt’s Red Sea coast. We are also open to exploring expansion opportunities beyond Egypt,” Sherif added.
The project is built on 100 Feddans, with Egypt-based Redcon Construction company responsible for all units’ construction.
Commenting about his expectations for Egypt’s property market, Sherif said that the appetite for real estate is growing, as people want to hedge from a weaker pound situation and inflation.
“We are a home-buying culture, and Egyptians hold a strong belief that investing in real estate is one of the safest investments. There is a housing deficit of over 3 million units. The demand for homes is widening about 400,000 every year, while the organised private sector supply is only 20,000 units per year. The demand for homes in Egypt is genuine, not speculative, and driven by strong underlying demographics.”
“Real estate is considered a guarder of value and a hedge against inflation and currency weakness,” he added.
Sodic reported a 25.6% year-on-year (y-o-y) profit increase in the second quarter (Q2) of 2017 due to a boost in revenues.
Profits reached EGP 129.5m in Q2 2017 as compared to EGP 103.12m during the same period a year before, the company announced in a bourse filing on Thursday.
Revenues increased to EGP 468.9n in Q2 2017 as compared to EGP 463.7m during the same period a year before, while profits increased to EGP 341.5m in the first half (H1) of 2017 as compared to EGP 157.7m during the same period a year before.
The company standalone profits increased during H1 2017 to EGP 147.02m versus EGP 68.4m in H1 2016, with consolidated profits reaching EGP 211.9m during Q1 2017 as compared to the same period a year before, considering minority rights.