Ahmed Abdel Salam, CEO of Valero Developments, has announced that the company targets to expand its investment portfolio to EGP 3.2bn in the second quarter (Q2) of the year. Valero Developments currently owns three projects in Obour City, catering to different market segments. Two of these projects are commercial and mixed-use developments, while the third is a residential compound. Among these projects is Circle 9 Mall, a fully integrated commercial development situated in a prime location in Obour City. The company has already commenced construction, with 25% of the concrete structure completed. Abdel Salam noted that Circle 9 Mall comprises a ground floor and three additional floors, with a targeted sales volume of EGP 280m. The project is expected to be completed within a year. He further disclosed that the company's second project, White Mall, is a combined entertainment and medical complex, currently being developed in parallel with the ongoing construction of Circle 9 Mall. Located in the Eighth District of Obour City, White Mall is designed to offer an integrated commercial experience, featuring smart panoramic elevators, escalators, a dedicated parking area, central air conditioning, Wi-Fi connectivity, disability-friendly facilities, backup power generators, and a private security system. Spanning 3,300 sqm, the mall consists of a ground floor and two additional levels, with a targeted sales volume of EGP 480m. Construction began last month, marking a significant milestone in Valero's expansion strategy. In addition to its commercial developments, Valero Developments is also working on a residential compound spanning 13 feddans, further diversifying its real estate portfolio. The compound is set to launch in Q2. Abdel Salam explained that the company's current investment portfolio in Obour City stands at EGP 630m, with a target to expand its land portfolio to EGP 3.2bn in Q2 through the addition of a new project. He emphasized that Valero Developments is financing its projects entirely through self-funding, ensuring financial stability and steady progress. He revealed that the company is actively considering acquiring a new land plot in Obour City of at least 50 feddans, in partnership with a non-Egyptian developer. Additionally, Valero Developments is gearing up to expand internationally, with plans to establish new branches in Saudi Arabia this year while also exploring opportunities in other markets. Regarding the company's focus on projects in Obour City, Abdel Salam commented that the city has become one of the leading new urban developments and an attractive investment destination for major real estate developers looking to implement high-quality urban projects. This is particularly due to the city's strong investment advantages, which appeal to a wide range of developers. He further highlighted that the return on investment (ROI) in Obour City is notably high, ranging between 20-25% for commercial and administrative properties. Abdel Salam emphasized that Obour City possesses strong investment fundamentals, making it a prime target for developers. The city's advanced infrastructure and comprehensive services cater to the needs of both investors and residents. Additionally, it boasts a well-developed road network, schools, and hospitals, ensuring seamless connectivity between Obour and surrounding urban areas. He explained that Obour City spans 16,000 feddans and features a well-planned urban layout, including a variety of residential zones. Additionally, Obour City enjoys a strategic location along major regional and national roads, including the Cairo-Ismailia Desert Road, the Regional Ring Road, and the Cairo-Belbeis Road, ensuring easy accessibility from various locations. The Egyptian government aims to transform Obour City into a fully integrated urban center by enhancing infrastructure, expanding public services, and attracting both local and international investments. With its ambitious projects and strategic vision, Valero Developments is well-positioned to capitalize on the city's growth, further solidifying its presence in the Egyptian real estate market.
