Beta Egypt for Urban Development intends to implement the first phase of its Beta Greens New Cairo project early next year, which includes about 500 housing units with initial investments of about EGP 1bn, Chairperson Alaa Fekri told Daily News Egypt.
What are the details of Beta Greens New Cairo?
The project is on an area of 85 feddans in Mostakbal City, New Cairo and is being implemented over six phases with initial investments of EGP 6bn.
The company intends to implement the first phase of the project early next year, which includes about 500 housing units with total initial investments of about EGP 1bn, out of a total of EGP 6bn for the whole project. The total project includes 3,000 housing units, which include 100 villas, and the other units are apartments of different sizes. The built-up area represents only 20% of the whole project. The first phase will be delivered in 2021.
Did the company acquire the ministerial approval for the project?
The ministerial approval for the project has been obtained and licenses are being issued, which are expected to be completed during the current year. The company will begin preparing the site for construction during the current year. We have already launched marketing for the project’s first phase.
What is the value of targeted contractual sales this year?
The company aims to achieve contractual sales from the project during the current year worth EGP 2bn, especially with the current activity in the real estate market, which is expected to continue during the coming period, driven by the continued existence of real demand, and turning of customers invest in property after interest rates were lowered. The current period is most appropriate to buy property before prices of property increase.
Does the company plan to acquire lands at the New Administrative Capital?
The New Administrative Capital is one of the most important national and investment projects. Further, the project represents a strong development opportunity for all developers in the real estate market, especially with the strong national and government support directed towards it, which contributes to overcoming all obstacles facing developers working within the project.
The company was planning to acquire a plot of land in the capital at the time we were in negotiations with El Mostakbal for Urban Development Company. However, the fast pace of negotiations with El Mostakbal led us to direct the company’s investments to this project, which does not mean cancelling the company’s intention to invest in the New Administrative Capital, especially because it is a very distinctive project for investment.
Do you think that there is a shortage of mortgage financing in the market?
The price increases that happened last year in the real estate market following the flotation did not represent the full increase in the cost of implementation, as the developer had to bear part of that increase in order to maintain sales activity, which comes out of revenue for the continued implementation of projects, as developers are committed to delivering units at their scheduled time. I think developers will not be able to continue to act as financiers of clients.
Real estate developers and clients have a financial crisis, both in the implementation of units and buying, a problem that developers may be able to solve, but clients are facing a real crisis, especially with the absence of the role of mortgage financing in support of them, as a result of the difficulty of procedures and requirements.
I believe that the government has to interfere to restructure the mortgage finance system and to reconsider laws regulating the system to facilitate financing for citizens, which in turn ensures the provision of liquidity to developers to enable their expansion plans instead of pumping investments into the implementation of projects and financing clients so as not to seize any other investment opportunities.
What is the value of investments Beta is directing to projects this year?
The company aims to direct EGP 400m to our projects in the current year. As the Golf Mall is being built on an area of 5,000 sqm in Sixth of October with investments of EGP 45m. In addition, the Greens Mall will be implemented on an area of 8,000 sqm at a total cost of EGP 90m, as well as the construction works on Beta Greens New Cairo project.
What is the update regarding the Beta Greens Sixth of October project?
Currently, the company is marketing 120 units of the Beta Greens project with targeted sales of approximately EGP 200m. These units are the last of the project, which the company expects to market during the current year.
What is your opinion regarding the state’s real estate export strategy?
Exporting property represents a strong opportunity for real estate developers to take advantage of the currency devaluation following the flotation, whether to Egyptian expatriates or to foreigners, which necessitates the need to provide distinctive real estate products capable of competing in global markets. In addition, we must design real estate units to meet the requirements of the target customers.
What is the company’s plan to export real estate?
We will participate in a real estate exhibition in Kuwait this year. The company is also considering participating in another real estate exhibition in Dubai, where the company aims to market its units to Egyptians working in these countries as well as non-Egyptian citizens.
Given the direction of the state to develop areas such as Upper Egypt, Sinai, and New Alamein, do you plan to invest in these areas?
These areas supposed to be developed in parallel to ensure comprehensive and accelerated development, which is not only achieved by the state only, but also with the participation of the private sector in its implementation. Nevertheless, it is necessary to encourage cooperation between the private sector and the state for these cities’ development.
Furthermore, there is a need for a comprehensive development map that ensures the creation of employment and housing opportunities within the same city in order to attract citizens to live in it. In addition to that, announcing the investment map, and disclosure of the investment opportunities offered in those cities and the benefits of participating in them, will encourage the private sector to join and develop those regions.
What are your expectations for investments in the sector this year?
The improvement of the investment climate in the real estate market during the recent period and the speeding up of issuing ministerial approvals and building permits for real estate projects, as well as overcoming all investment disputes with different companies, encourages local and foreign developers to inject new investments into the domestic market in the coming period.