Al-Futtaim Group expects to achieve sales of EGP 3bn from three projects. Two are residential and the third is administrative, all in New Cairo, according to the managing director of Al-Futtaim Group Real Estate, Ashraf Ezz El-Din.
Ezz El-Din told Daily News Egypt that the group targets achieving EGP 2bn from its Podium project, which includes a 50,000 sqm sales area, and the group has marketed 10,000 sqm, which represents 20% of the project. The company intends to complete the project within three years.
This year, the group is launching Aura, a residential housing project that includes 146 villas, each with an area of 300 sqm. The second is High Land, comprising 407 housing units. Next is a commercial and administrative project, Podium, which includes 41,000 sqm for administrative and commercial activities.
He added that the company aims to pump EGP 2.5bn into construction works this year compared to EGP 1.8bn in 2017.
Ezz El-Din previously told Daily News Egypt in an interview that the company achieved EGP 2.9bn in sales last year and expects to raise that to EGP 4.5bn this year, in line with its new offerings.
He revealed that the company is launching the development of four new residential and administrative projects this year with investments of EGP 7.5bn.
The fourth project the company is developing this year is an administrative one for an international petroleum company on an area of 9,000 sqm.
“The company has developed 60% of the area of the Cairo Festival City project and the total project is across 3m sqm, which includes various administrative, commercial, and residential activities. The company has injected EGP 16bn so far out of the total planned EGP 35bn until 2022,” Ezz El-Din said, adding, “bank financing systems will vary according to the nature of activity for each project and bank borrowing is one of the options.”
He explained that the company aims to market 20-25% of its sales abroad, especially in Arab Gulf countries, and the company participated in a number of exhibitions abroad. However, it depends on its loyal clients for 50% of its unit reservations.
He noted that the company delivered 120 units last year and plans to hand over 450 units this year; 350 apartments and 100 villas.
He expected prices hike to range from 7-10% this year.
He elaborated that the planned subsidy cuts in the coming period will not significantly affect the cost of construction and that the group will raise prices only in the case of a large price gap to maintain the quality of projects.
The company will begin implementing a five-star hotel with 270 rooms, in addition to 128 services and branded apartments, with investments of EGP 4bn. Furthermore, the company is studying the establishment of another four-star hotel with 340 rooms, revealing that the company is currently negotiating with international management companies to manage it, Ezz El-Din told Daily News Egypt in a previous statement.
He explained that the company is developing the construction phase of the project Oriana on an area of 848,300 sqm and includes 617 villas and the Festival Living project on an area of 121,000 sqm, which includes 712 apartments.
He further added that the company is implementing the extension of the Cairo Festival City Mall on an area of 27,000 sqm as the company will begin the extension’s construction next year with investments exceeding EGP 1bn.