Amer Group Company signed an agreement to develop the remaining areas in four projects owned by its sister company Porto Group. These areas are included in the second phase of Porto Matruh, the fourth phase of Golf Porto Marina, the fourth phase of Golf Porto Sokhna, and Porto Heliopolis. According to an investment report issued by Amer Group the agreement stipulates that Amer Group will acquire 20% of the revenues of Porto Matruh, Golf Porto Marina, and Golf Porto Sokhna. As for the Porto Heliopolis project, the company's share will reach 40% of the revenues. Amer Group also affirmed they are seeking to buy more land parcels to increase their total acquisition to 5.5m sqm, including 2m sqm of undeveloped lands. The company further plans to transform from a real estate developer into a real estate investor. Amer Group was recently divided into two companies; Amer Group, which mainly focuses on real estate investment sectors, restaurants, hotels, and malls and Porto Group which includes the famous Porto projects. In the report, Amer Group revealed that it will acquire 1% of Porto Group revenues, equivalent to its ownership of the Porto trademark. Regarding the revenues' decline over the first nine month of 2015 to EGP 111m, compared to EGP 168m recorded over the same period last year, Amer Group attributed it to growth in general and administrative expenses reaching EGP 165.4m, compared to EGP 143.6m during the same period last year. By 30 September 2015, the company's revenues recorded EGP 1.510bn, witnessing an increase of 21%, compared to EGP 1.246bn achieved over the same period in 2014. The real estate revenues contributed around EGP 1.05bn1 by delivering 768 units as well as recording EGP 126m in hotels revenues, where the occupancy rates marked 64%, while malls revenues reached EGP51m. Moreover, Amer Group achieved sales estimated at EGP 1.052bn, during the first nine months of 2015, given that sales are recorded in revenues only when they are delivered, according to Egyptian accounting standards. To date, the company's total sales reached around EGP 3.686bn and are expected to be recorded in revenues over the next two years.
