Madinet Masr is expediting work on its Sarai project near the New Administrative Capital and Taj City in east Cairo, allocating EGP 10bn in capital expenditures to meet project timelines. The company successfully implemented its expansion strategy throughout 2024, launching five new phases across its Sarai project, spanning 5.5 million sqm, and Taj City, covering 3.6 million sqm. It aims to develop non-residential areas within these projects, totaling 1,200 sqm over the next five years. Within Sarai, Madinet Masr introduced the Sheya project, covering 228,212 sqm and generating sales of EGP 5.3bn, and the Esse Residence project, spanning 400,000 sqm with anticipated sales of EGP 18.2bn. To accelerate construction and development, the company partnered with major contracting and engineering firms, including: * Aboelwafa Contracting for over EGP 1bn * Redcon Spain for EGP 600m * SCAD, under a memorandum of understanding, to execute the Croons project within Sarai, valued at EGP 650m Madinet Masr also launched Tajed, its first integrated commercial zone, spanning 39,000 sqm, to meet customers' diverse commercial needs. The company is developing a building within Taj City to house a Carrefour retail branch under a nine-year lease agreement with UAE-based Majid Al Futtaim, at a construction cost of EGP 500m. A similar agreement was signed with B.TECH in Tajed, securing rental returns of EGP 250m over nine years. Looking ahead, Madinet Masr plans to introduce a new finishing services arm in January 2025, as part of its broader local market expansion strategy with an emphasis on non-residential projects. Expanding Land Portfolio Abdallah Sallam, CEO and Managing Director of Madinet Masr, emphasized the company's focus on strategic land acquisitions within Greater Cairo, with a land portfolio exceeding 12.7 million sqm. Projects launched in 2024 account for 24.2% of this total portfolio. * Taj City: 78.3% of the land is under development, with 21.7% allocated for future non-residential projects. * Sarai: 58.8% of the land is under development, with 26.5% reserved for future residential projects and 14.7% for future non-residential projects. Madinet Masr plans to assign EGP 20bn worth of construction and contracting works in 2025. Strong Financial Performance Sallam reported a significant increase in contracted sales, which more than doubled year-over-year to EGP 32.7bn in the third quarter. Unit sales rose by 58.5% year-over-year to 4,097 units across various projects. The company achieved 88.4% year-over-year growth in gross profit, reaching EGP 5.4bn during the first nine months of 2024. The gross profit margin improved to 75.1%, compared to 64.9% during the same period in 2023. Sallam concluded by affirming Madinet Masr's commitment to sustained growth and strategic expansion.
