Orientals for Urban Development (OUD) is targeting to obtain lands in the new Administrative Capital and the City of the Future, as well as Upper Egypt and Nile Delta to establish various residential and integrated services projects.
OUD is a joint-stock company affiliated to Oriental Weavers Group. Established in 1994 to capitalise on the real estate boom in Egypt, the company has since bloomed into one of Egypt’s largest real estate and urban development companies with investments in excess of $3.1bn.
The company aims to achieve EGP 4bn in sales by 2018, and about EGP 305bn in 2019, according to Mohamed Farid Khamis, OUD board member and owner.
Khamis said that the coming projects would cost a total of EGP 5bn, of which EGP 3.5bn in 2018, and EGP 1.5bn in 2019.
What are the company’s hotel projects in 2018?
We will open two 4-star hotels in 2018. The first hotel will cost of EGP 60m, and will include 75 rooms.
The second hotel will include 115 rooms at Marina 4, and at a EGP 150m cost.
In addition, the company will open Arena Hotel in Marsa Alam with an investment of EGP 500m, and it will include 380 rooms.
What is the company’s expansion plan?
The company has developed an expansion plan for the next year with the aim of establishing various residential, commercial, and administrative projects in different regions and cities nationwide.
The company has recently launched Parritel project in Nabq, Sharm El Sheikh, with investments of EGP 1.6bn during Next Move Exhibition held at the Cairo International Convention and Exhibition Centre in Nasr City.
The company launched the first units of the project for marketing to customers during the exhibition, which includes 1500 units, 350 townhouses, and 3 hotels in addition to various recreational and commercial services. The project is the largest project that includes industrial lakes in the Red Sea.
OUD seeks to enter new cities, such as the New Administrative Capital. We applied for obtaining two plots of land in the new capital. The first plot will be allocated for establishing an integrated residential project on an area of 50 acres. The second one, over 8,000sqm, will include a commercial and service project. Currently, OUD is waiting for the New Administrative Capital company’s approval to immediately prepare studies and designs of the projects. The projects’ marketing campaign is expected to be launched during Q1 2018.
The company also seeks to obtain a 100-acre plot of land in Mostakbal City B to build an integrated residential project, including commercial and administrative services.
Moreover, the company is looking forward to complete the required approvals for obtaining the 21.5-acre land offered by the New Urban Communities Authority (NUCA). The company is also preparing to start the development of another integrated residential project in 2018.
In 2018, the company plans to launch a new phase of its “Oriental Coast” project in Marsa Alam, a phase of about 350,000sqm, within which Nubian architectural buildings will be implemented.
The project covers an area of 5.5m sqm, has a 7.5-kilometre sea front, and includes 13 phases, which are currently under way.
During Next Move exhibition, the company also offered Heliopolis Hills project in Obour City, stretched along 18 acres and includes 164 townhouses. The company is focusing throughout the project on constructing villas over small areas to meet the needs of customers and allow them to get a distinctive villa unit price in the Fifth Settlement. In addition, the company marketed about 65% of the total units of the project, which was launched during Cityscape exhibition held in March, and the target is to market the rest of the project during the next move.
The company recently signed a cooperation protocol with Business to Business for Investment and Real Estate Marketing (B2B). The protocol aims at the development of some commercial projects.
In addition, the company aims to start implementing a new project in the North Coast, on an area of 50 acres. The project will target above middle-income class and will include small-space 1,400 small units at competitive prices. All units would include terraces allowing all units to enjoy the sea view.
The company is also preparing to implement two new phases of its Oriental Coast project in Marsa Alam, on an area of 5.5m sqms, that currently includes 13 phases. One of the new phases will be built on an area of 350,000 sqms, designed on Nubian architectural style. The second one will be built on an area of 400,000 sqms, and will include hotel apartments.
The project has a unique 7.5-kilometre long sea front and is 35 kilometres away from the airport.
The company also considers the implementation of new projects in Upper Egypt and Nile Delta regions which promise great investment opportunities.
OUD is preparing to develop 2,000 acres in Ain Sokhna to build factories and workshops.
What are the company’s ongoing projects?
We are currently implementing different stages in several projects, including Heliopolis Hills in Obour City. It is located on an area of 18 acres, includes 164 townhouses, and will be delivered within two years and half. Furthermore, the company is developing Baron Plaza, which consists of 60 units and a space for administrative units at a cost of EGP 160m and targeted sales of EGP 22m during 2018.
Moreover, the company is developing Korba Heights project with 18 units and an investment of EGP 120m, with expected sales of EGP 160m in 2018.
In Marsa Alam, we have Las Cabanas project that includes 500 units developed on 3 phases and we are now developing the last phase, which includes 70 units with EGP 50m investments specifically for that phase, with EGP 70m expect in phase sales during 2018.
In addition, we are developing another project in Marsa Alam as the company completed the first phase and is now working on the second phase consisting of 120 units. The project is designed on four phases with total units of 600 units. The investment cost of the second phase of the project is EGP100m and expected sales of EGP130m.
The company also focuses on the implementation of villas in small spaces to meet the needs of customers and allow them to get a special villa at a price similar to the units in Fifth Settlement. The company has marketed about 65% of the total units of the project, during Cityscape exhibition held in March. We intend to market the rest of the project during Next Move exhibition.
The company is also implementing other projects, including Korba Royal Residence in Heliopolis. It was launched by the company during the current year and it includes a variety of services such as shops, cafés, restaurants, children’s play area, swimming pool, and a club. We are also implementing the Baron City on the ring road.
There are other projects, including the City Business Hotel in the 10th of Ramadan, the La Playa Hotel in the North Coast, the Baron Mall in Katameya, and the Family Centre on Ismailia Road.
OUD is also one of the first companies to apply smart home technologies in 2008 in its Baron City.
What are the company’s expected sales in 2018?
The company targets achieving sales of up to EGP 4bn in 2018, and about EGP 3.5bn in 2019.
How much investments would your company inject in the coming period?
The 2018 and 2019 will cost about EGP 5bn, divided into EGP 3.5bn in 2018, and EGP 1.5bn in 2019.
Does the company conduct maintenance of its projects?
The company has a subsidiary company that manages its projects to provide the after-sales services of maintenance.
How do you see the local real estate market?
The Egyptian real estate market provides various opportunities and has the ability to achieve the highest returns in light of the increasing demand for housing units. Many customers buy real estate for the purpose of investment. This segment represents a large part of real estate company sales. The next period will be quite calm in terms of the sales, as a result of saturation and the large volume of purchases during the period of instability for the local currency.
It could affect the sales of some companies that target these segments. Therefore, the company focuses on selling units to customers searching for residence to ensure the occupancy of its communities.
Next year will see a natural increase in the prices of real estate units, but it will not reach this year’s levels.
Moreover, the new Administrative Capital and New Alamein city will capture a large part of the requests of customers during the next year and will contribute to the stability of the price of several cities of existing communities.
What are other activities that the company is developing?
We have an agricultural activity, as we are currently expanding in our agricultural project. We produce 130,000 tonnes of citrus, with investments of EGP 60m and expected profit of EGP 100m. We export 50% of the product while the other 50% are sold in local market.
How do you see the Egyptian real estate sector investments?
After the issuance of the new Investment Law, the real estate market in Egypt became more attractive for new domestic and foreign investments. The major projects implemented by the state during the last three years represent a strong infrastructure that encourages investment.
What kind of facilities will your company offer at Next Move Egypt?
Real estate exhibitions contributed to more than 75% of the company’s sales during the current year. OUD participated in 17 real estate exhibitions inside and outside Egypt, during which they promoted the company’s projects and presented special offers to its customers.
Thus, real estate exhibitions allow companies to reach a larger segment of customers and communicate with them directly to identify their needs as well as study the market. In addition, exhibitions also increase competitiveness between real estate companies, which benefit the sector and customers.
Foreign exhibitions witnessed a noticeable turnout of customers this year, especially Egyptian expatriates, due to the great prices offered by companies following the flotation of the pound. The decline of local currency value against other foreign currencies, contributed to increasing the purchasing power among Egyptian expatriates. We should develop the mechanism of selling Egyptian real estate abroad, as it provides the highest returns and profitability in the world in light of the increasing demand on real estate in the Egyptian market.
How do you see the new law that grants residency to foreigners in return for buying a property?
This law will contribute to the activation of sales among foreigners and increasing foreign currency reserves.