By El-Sayed Solyman
Cairo – Mubasher: Egypt’s property developer SODIC may resort to the debt market next year for funding current and future projects in Egypt, said CEO Maged Sherif.
In an interview with Mubasher, Sherif said that SODIC may raise loans in 2017 when it starts co-developing an integrated project over 655-acres area with Heliopolis Housing. He added that such loans would go as well for financing new investments.
The company’s current liquidity is robust and can self-cover all liabilities until the end of 2016 at least, the CEO added, confirming that SODIC is employing EGP 2 billion for financing the present projects.
Moreover, SODIC has been awarded a number of credit facilities of which the company used 60% only, Sherif said, declining to define their total amounts or the creditors.
The interview first shed light on the joint venture with Heliopolis Housing. Sherif pointed out that the company has already started laying out the project’s master plan, expecting residential units to be offered for sale within the first quarter of 2017.
Earlier, the company announced the project would be completed within ten years and would include more than 8,600 residential units, along with commercial, administrative as well as services units.
In a reply to a question over the reasons behind entering into a joint venture with Heliopolis Housing, the CEO said land plots provided by the government for property developers are offered at exaggerated prices, clarifying, “when purchasing a land spot at EGP 4,500 a metre, the developer will have to sell the metre for no more than EGP 15,000”.
The CEO said company’s undeveloped land bank reached 6.1 million sqm against 3.3 million sqm before the JV.
Concerning SODIC’s future plans and investments the top executive indicated that his company is stimulated to expand its tourism development projects, namely following the “successful experience” of Caesar Bay Resort in the North Coast.
Moreover, the real estate firm is taken on extending its investment to the west of Cairo. However, it is not planning to foray into new sectors other than real estate development.
Commenting on the Egyptian pound devaluation, the CEO said the move positively contributes to the real estate sector, and to SODIC in particular. He said investors are presently considering real estate assets as safe havens, which will boom the real estate activity in Egypt.
Sherif has held various roles at real estate companies, most recently as CEO at Hyde Park Properties. He also ran the Egyptian business of Dubai’s Majid Al Futtaim Properties. Further, he took over a number of positions at Palm Hills.
Translated by Ahmed El-Sayed Ali
