First Group for Real Estate Investment intends to launch two new tourism residential projects in Ain Sokhna and the North Coast with EGP 12bn in target sales, according to the company’s Chairperson Bashir Mostafa.
Daily News Egypt interviewed Mostafa to find out the company’s plan for the coming year, the transcript for which is below, lightly edited for clarity:
What is company’s expansion plan?
First Group plans to launch two tourism residential projects in the North Coast and Ain Sokhna. The first is in the North Coast and it will be launched by mid-2019 with EGP 3bn in investments with anticipated sales of EGP 6bn.
The project is located on an area of 94 feddan in Fouka Bay, the North Coast, and about 25% of the project is allocated for service apartments, and it will be delivered semi-finished as a residential units. The project is owned by the company and we plan to implement and market it next year.
Next, the company intends to launch a new residential housing project in Ain Sokhna next year with targeted revenues of EGP 6bn. The project is located on an area of 85 feddan, and is being implemented with a total investment of EGP 2.2bn. We plan to market it in the third quarter of next year. It will be implemented in partnership with investors, and owners of part of the land.
Furthermore, the company is studying the execution of a partnership residential project system in the New Administrative Capital on 42 feddan. The project’s land is owned by one of the companies of the public business sector. The company will develop and market the project according to its market experience.
Additionally, the company also applied for land of between 5,000 and 8,000 sqm for the implementation of an administrative project in the Administrative Capital.
Beyond that, an agreement is being reached with an industrial investor in Suez city to develop a partnership project on an area of 12,000 sqm and a 60,000 sqm to implement a middle-income housing project.
What is the value of targeted sales in 2019?
We aim to achieve sales of EGP 1bn, driven by launching the two coastal projects in addition to the sales of fourth phase of Kenz Compound and Kazan Mall.
What is the value of investments that will be directed into your projects next year?
The company will direct EGP 700m in investments into its projects in 2019.
When will the company deliver the Kenz compound project?
We plan to deliver the units of Kenz Compound in Sixth of October City by 2020, at an investment value of EGP 800m. The project is held on 30 feddan and includes Kaya Plaza mall and a social club, as well as1,350 units with spaces ranging between 90 sqm and 250 sqm.
What is the value of the project’s targeted sales?
The targeted sales of the residential part of the project amounted to about EGP1.5bn, and the company has attained about 75% of total target sales.
What is the project’s delivery situation?
The first and second phases have been handed over, and the company is completing the third phase, and has recently started the implementation of the fourth and final phase of the project, which includes 12 buildings.
What is the value of investments of the Kaya Plaza Mall in the Kenz Compound project?
The total investment of Kaya Plaza project is EGP 900m, which is the commercial part of the Kenz Compound project.
Likewise, it is planned to be delivered by the end of 2020, and includes administrative units and medical clinics that will be sold, in addition to commercial units which will only be rented and self-managed.
The mall is located on an area of 12,000 sqm with 2 basement floors which are used as a parking lot for the project.
What is the value of investments in the Kazan Plaza Mall in Sixth of October City?
The Kazan Plaza Mall is being developing in Sixth of October City, in front of Mall of Arabia, and the company has directed EGP 300m in project’s investments.
The project includes commercial and administrative units, and it comprises of clinic units as well. It includes four buildings encompassing commercial shops, administrative offices, and medical units, with spaces ranging between 50 and 600 sqm.
The company will sell the administrative and medical units, and rent the commercial units. The project will be maintained and managed by a company affiliated to First Group, in order to guarantee the quality of the mall’s services. Two administrative and medical buildings were integrated into the project and marketed, with the remaining two integrated in the coming year.
What is the project’s targeted sales?
The company targets EGP 900m sales of the project.
What is the company’s source of funding?
The company finance projects from sales and self-finance by shareholders, as well as banking loans. The company has acquired loans from some Egyptian banks, EGP120m from Ahli United Bank, EGP 80m from Al Baraka Bank, and EGP 35m from BLOM Bank.