CAIRO: Egyptian real estate firm SODIC, seeking new land near its flagship Allegria project, said on Tuesday it had bid for 410 feddans (426 acres) in the Cairo suburb of Sheikh Zayed City. The firm, Egypt's fourth largest developer by market value, sells mostly high-end residential and commercial property on the outskirts of Cairo. "We are planning to develop this land as an extension to Allegria," Chief Executive Officer Maher Maksoud said by email. The one-month auction for the land, one of Egypt's largest since 2007, began in late June. Five other companies, including property developer Palm Hills Developments, also picked up auction documents from the state New Urban Communities Authority (NUCA), which is responsible for developing satellite cities around Cairo. Only SODIC submitted its application, Al-Mal newspaper reported on Tuesday. It did not say when the auction results would be announced, and NUCA officials were not immediately available for comment. Palm Hills declined to say whether it had bid. SODIC plans to deliver about 300 homes in the upscale Allegria project by the end of 2010 and 600 homes in 2011. Maksoud said the height allowance in the Sheikh Zayed plot being auctioned had been lowered to 9 meters from 15 meters, without giving details. Analysts and local media have framed the auction as a barometer of the strength of Egypt's real estate sector and the buying power of its main developers. Strong local demand and being insulated from international credit markets have helped Egypt's property sector come through the global financial crisis better than many other countries. But an undersized mortgage market and other hurdles have tempered the ability of many Egyptians to afford homes in the luxury developments which have mushroomed in Cairo's rapidly growing suburbs.
