Emaar Misr leads real estate company’ sales with contracts worth EGP 8.6bn

Daily News Egypt
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Emaar Misr recorded the highest sales in the Egyptian stock market during 2015 among the listed real estate companies whose work is concentrated in the local market.

The Egyptian Accounting Standards mortgage registration of real estate sales take into consideration the value of revenue garnered by companies who deliver sold units to customers.

Emmar Misr also concluded the reconstruction of new sales contracts worth EGP8.6b in 2015, compared to EGP7.1b in 2014, which marks a 21.2% growth rate.

The company budget in 2015 recorded EGP1.381bn in indebtedness from clients and payable bills, an item that falls under instalments due from customers who received real estate units. This budget is also an indication of the size of future revenue, for which the company awaits its collection.

Companies can conduct securitisation operations for indebtedness through the issuance of securitisation bonds, by which they can obtain financing for their products.

Emaar Misr recorded its sales through three projects: Uptown Cairo at El Moqattam, Mivida in the Fifth Settlement, and Marassi Resort in the Sidi Abdel Rahman and El Alamein areas.

Talaat Moustafa Group recorded new sales contracts during 2015 worth EGP 6.26bn, 5.15% lower than sales recorded during 2014, which amounted to EGP 6.6bn.

TMG’s sales came from the Madinaty project, which extends over 33.6m sqm.

The executive management of TMG considered the sales size as positive considering the market witnessed lower demand on sales compared to previous years.

TMG’s balance of indebtedness from clients and receivable bills are estimated is EGP 15.273bn, slightly higher than in 2014, which saw credit record an estimated EGP 15.185bn.

Palm Hills came in third place in terms of sales during 2015 with a registration of new contracts worth EGP 4.435bn and with an annual growth rate of 44% compared to EGP 2.979bn in 2014.

This comes in light of the company’s development of real estate projects as it works to develop 18 projects in east Cairo, 6th of October City and the North Coast.

Palm Hills Development (PHD) also recorded contracts worth EGP 6.3bn in 2015 with an annual growth rate of 61%, which is the highest rate recorded by the company in its history.

Indebtedness from clients and receivable bills in PHD’s budget recorded EGP 7.6bn, reflecting the company’s ability to develop good income in the coming period.

Sixth of October Development & Investment (SODIC) ranked fourth in terms of sales during 2015 with a value worth EGP 4.4bn representing an annual growth rate of 43%.

Eastown and Villette projects in eastern Cairo contributed to SODIC’s growth with 63% of net contracted sales. Moreover, the Caesar project contributed with sales worth EGP 671m. SODIC’s debut project in the North Coast launched in August 2015.

SODIC projects increased from EGP 6.97bn to EGP 8.914bn, including EGP 2.821bn in SODIC West and EGP 5.42bn in SODIC East and EGP 673.42m in the Cesar project.

Indebtedness from clients and receivable bills recorded EGP 4.658bn, compared to EGP 3.318bn in 2014.

Madinet Nasr Housing and Development (MNHD) came in fifth place with sales worth EGP 346m in 2015, achieved from sales in the “Tag Sultan” project in eastern Cairo.

MNHD re-launched the “Taj City” project at the end of the final quarter of 2015 on an area of ​​3.5m sqm in east Cairo, after amending the general outline of the project to include the re-planned use of the distribution and increase the green areas in residential and administrative areas.

MNHD also announced in December 2015 bookings worth EGP 628m from 436 units of total units proposed for the first phase of the Capital Gardens project. This project is being developed in partnership with Palm Hills.

Indebtedness from clients and receivable bills increased to EGP 987.8m in 2015 compared to EGP 910.7m during 2014.

Misr El-Gedida Housing and Development did not reveal through its budget or its annual report for 2014/2015 the value of new sales contracts.

The company’s budget for the fiscal year 2014/2015 reveals EGP1.828bn worth of indebtedness from clients and receivable bills.

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