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Wadi Degla Developments increases total sales worth to EGP 5bn in 2016 Wadi Degla has its sights set on the New Administrative Capital while it continues to focus on developing 17 real estate projects to boost Egypt's economy
Wadi Degla Developments, a component of Wadi Degla Holding Company, is currently developing 17 real estate projects as part of its goal to help achieve economic development. These projects focus on a number of key areas, both residential and touristic, including Blumar El Sokhna, Blumar Hurghada, Blumar Hills, Murano Ain Sokhna, Blumar Sidi Abdel Rahman in North Coast, and Blumar El Dome. Aside from these new development projects, Wadi Degla Developments delivers a wide variety of real estate products and services to its customers. The company's residential projects include the Pyramids Walk, River Walk, Tijan Zahraa El Maadi, Tijan El Maadi, Canal Residence, Victoria Residence, Promenade October, and Promenade El Maadi. This is in addition to Neopolis and Magawish resorts. The company's land bank is 6.5m sqm that spans across seven regions. It has acquired more than 70% of the land in east Cairo and has constructed 30,000 residential units. The company is participating in the Elite Real Estate exhibition to present its integrated vision for real estate development in Egypt during the coming period. In addition to presenting some of its projects in Egypt such as Neopolis, Murano Ain Sokhna, Blumar El Sokhna, and Blumar Hurghada, according to CEO Maged Helmy. Helmy said that the company's participation reflects its expansion plan at the regional level especially in the Gulf region, which represents one of the highest areas of demand for real estate units in the Egyptian market. Daily News Egypt talked to Wadi Degla Developments' CEO to discuss the business' developments. Does the company plan to participate in projects for the New Administrative Capital? The company will aim to develop projects in the New Administrative Capital once the government announces a mechanism for bidding for land inside the new capital. However, we believe that partnership is the most appropriate mechanism for offering land in the New Administrative Capital. The company submitted a request to the Ministry of Housing to obtain new lands in new areas and cities. What are the regions and requested size? The company has already submitted a request to the Ministry of Housing to collaborate with the ministry in the development of 2,000 acres in west Cairo We also requested another 500 acres in another area. In addition, we are currently negotiating to develop a project in Matrouh governorate on an area of 1,200 acres. The company announced that it prefers partnerships. What are the current partnerships the company is involved in or plans on being involved in? The company has an established history of successful experiences in partnership with the government and official bodies, including Tijan1project, which the company has executed and delivered. This is in addition to Murano resort with the Egyptian General Company for Tourism and Hotels (EGOTH). The latest partnership project that Wadi Degla is preparing includes the development of the tourist resort Magawish in Hurghada in cooperation with Misr Travel, which is a subsidiary of EGOTH, the owner of the project. The project is worth an investment of EGP 1.6bn. Wadi Degla Developments will comprehensively develop the resort within an eight–year timeframe. What are the developments in the Promenade Maadi project? We are scheduled to complete the project over a three–year period. The project includes 26 buildings and consists of 200 housing units, including duplex apartments with varying sizes. The project is on an area of 34,130 sqm in the Zahraa Maadi region with investments worth EGP 350m. It contains a swimming pool for each duplex housing unit to meet the needs of customers and to allow them to enjoy more privacy. What is the company's plan for the second half of 2016, both at the level of offering units and delivery? The second quarter of 2016 witnessed a great and unprecedented breakthrough for the company through developing three new investment projects in the North West Coast, Ain Sokhna, and Hurghada. After that, the company raised its capital twice in 2015 and 2016. In 2015, it raised the capital from EGP 170m to EGP 500m. In 2016, the company raised its capital from EGP 500m to EGP 800m, which was reflected in the contractual sales of the company to reach up to 300 residential units with a total sales worth of EGP 5bn in the current year compared to EGP 3bn last year. From the beginning, the company targeted the above middle-income tranche at the same time as providing financial payment facilities to attract the largest number of possible clients to buy units. Wadi Degla Developments plans also to include the Neopolis project, one of the largest projects being developed by the company. The project is located on 545 acres in Future City in New Cairo, with investments ranging between EGP 13m to EGP 14m. The Neopolis project is a housing compound that accommodates about 14,000 housing units in varied sizes in addition to commercial and entertainment services, green areas, and the Wadi Degla club. How much did the company pay in dues to EGOTH and Misr Travel Company? According to total expected revenues from the project, this amounts to EGP 2.3bn. Misr Travel would gain EGP 670m of sales revenues, as well as the development of 441 rooms in Magawish and 400 rooms in a 4-star hotel in Blumar El Sokhna. Wadi Degla Developments paid EGP 50m immediately after the contract was signed. Additionally, cheques amounting to EGP 400m were handed over as a minimum of expected cash revenues.
