First Group real estate developer for KENZ Compound plans to launch a new tourism project in Fouka Bay area in the North Coast with a total initial investment of EGP 4bn.
Chairperson of the group Basheer Mostafa told Daily News Egypt that the project is being held on an area of 95 feddans owned by the company was purchased from Tourism Development Authority and will be carried out in four phases.
Mostafa added that the project will be an integrated residential entertaining project, noting that the building permits are currently being issued for the project.
He pointed out that the implementation of the first phase will start in the middle of next year, which includes 800 housing units representing about 50% of the total number of units of the project.
The first phase will be implemented with investments of EGP 1bn and will be completed and delivered by 2021.
He added that the project includes a four-star hotel and that the company begins to negotiate with the brand responsible for its management once it obtains licences from the concerned authorities.
“The project is self-financed and also through the project’s marketing revenues of the residential part,” noted Mostafa. “The company may have to resort to banks to finance the project, but the high interest rate on lending puts additional burdens on the developers.”
The company owns Kenz compound in 6th of October City on 30 feddans. It consists of four phases, with a total of 1,350 units. About 720 units were marketed and 900 units were built.
Mostafa said three phases were completed and two phases were marketed. The company is currently marketing the third phase and sales reached 60%.
Mostafa added that the company will start marketing the fourth phase in succession after the third phase, pointing out that carrying out the fourth and final phase will start in January, to end the implementation and marketing of whole project in two years.
He pointed out that the total investments of the project is approximately EGP 1bn.
The company aims to achieve EGP 200m sales of the Kenz project during the current year.
Mostafa revealed the company’s plan for the implementation of a new project in Ain Sokhna in the area of 85 acres, a residential tourist project.
He expected to receive the land from the Tourism Development Authority within six months to start preparing the project’s designs.
First Group also plans to implement a new commercial project in Sheikh Zayed next month, which includes 170 units of various sizes.
Further, the company plans to sell the administrative and medical units and lease the commercial units to ensure a certain quality of the project with the continued management of the commercial units, according to Mostafa.
He expected the project to be in operation by 2020.