Hazem Ashry, co-founder and chairperson at Redcon Medical Parks, said that his company will establish 100 clinics in its Alburouj Medical District project, which was announced last week.
Redcon Medical Parks is a subsidiary of Redcon Real Estate Development. The company is specialised in providing services of medical facilities in Egypt.
What are the expected returns from the first phase of the project?
We expect to achieve revenues of up to EGP 300m from selling the units in the new clinics complex project.
What are the project investments?
Redcon Medical Parks launched Alburouj Medical District project last week with investments of EGP 2bn, as part of the Alborouj project that is being implemented by Capital Group Properties for Real Estate Development.
What is the number of hospital beds in the project?
Alburouj Medical District project includes a big building for clinics and a hospital of 150 beds, next to a medical centre for wellness and fitness, as well as a restaurant and cafe court.
When will the first phase be implemented?
The company will start implementation of the first phase of the complex in March 2018, in preparation for the opening of the booking phase shortly.
What is the payment and booking system?
The company will offer the clinics to the doctors with a good system of payment. This will include paying a EGP 25,000 down payment and 10% of the total value at delivery, then paying quarterly installments for a period of five years. Units will be delivered within three years.
What is the total project area?
Alburouj Medical District is built on 33,000 sqm. The company will use 11,000 sqm in the first phase that includes the clinics complex, which will be ready in three years.
Who are the targets of the project?
The company aims at attracting people with PhDs and university professors to invest in the complex, as well as expatriate doctors from the Gulf and Europe, and then fresh graduate doctors.
Are there any negotiations with banks to fund clinics?
We are negotiating with some banks, in order to fund doctors who do not wish to pay for clinics over five years, so they can extend the installment period over 20 years.
Why does the company launch such a project?
The company has prepared a study on the area where the medical complex will be located. It was found to be with a high population of 120,000 residents by 2020, next to the employees of the companies close by, making it a good investment.
Alburouj project is on 1,212 feddans (5m sqm) in the area between Suez and Ismailia Desert roads. It is an integrated project with 28,000 residential units and a number of commercial, entertainment, and administrative units. It will be implemented over four phases in 10 years.
Selection of Alburouj project to launch the company’s first medical project was due to the proximity to a number of residential and high population density areas. This includes 12,000 residents and 8,000 employees in the planned Smart Village Project, along with companies and schools.
There is also a trend of displacement to the new population areas such as Badr, Obour, Sheikh Zayed, Nozha, and New Nozha. The project aims to provide medical facilities to residents of these cities.
What is the size of the company’s financial portfolio?
The size of the company’s new financial portfolio amounts to EGP 50m. It will be increased from self resources when the project begins.
The company also excludes borrowing from banks for the current period because of the high interest rates on lending, so it will rely on its own project financing.
What services does the project include?
The company will establish a medical clinic building in the first phase of the project, and will be joined by the hospital and the medical centre before 2023.
The company aims to establish a hospital with a capacity of 150 beds to treat all medical conditions.
The service in Egypt lacks good management. The acquisitions carried out within the medical sector are indicative of the attractiveness of the Egyptian market, which needs many medical services.
What do you think of recent acquisitions in the sector?
Despite the positive indicator of acquisitions, the market needs new medical entities and the restructuring of some of the old entities to provide medical service at a high level to be used to attract Arab and African expatriates to receive medical service.
Is the company considering providing medical tourism services?
The company is considering the possibility of providing therapeutic tourism services within the new medical complex, and it targets Africans in the first stage.
In addition, the company has established a company specialised in the field of medical buildings for the development of facilities, and will focus initially on clinics, and then the transformation into larger entities in later stages.