ROI negotiates with developers to manage multi-activity projects with investments of EGP 2.5bn

Shaimaa Al-Aees
7 Min Read
Emad Hamza, CEO of ROI

Real Estate Opportunities Investment (ROI) is negotiating with a group of real estate developers to manage their investments and provide marketing services, including projects in the New Administrative Capital, according to Emad Hamza, CEO of ROI.

Hamza told Daily News Egypt that ROI expects to contract with developers to manage investments of about EGP 2.5bn during the first year of its inception.

The company provides feasibility studies for residential and service projects, management of development and marketing phases, and providing after sales services, in addition to management of real estate portfolio for companies and clients, marketing advisory services, restructuring, and providing investment opportunities.

Hamza added that the company has exclusively contracted on managing and marketing a mixed-use project in Nozha, Cairo for Ebny for Real Estate Development with investments of EGP 600m.

Hamza noted that Sabbour Consulting Company is supervising the project, pointing out that the project is being built on 2,200 sqm and includes three towers compromising 96 apartments and 106 administrative units, and designating 6,000 sqm for commercial activities.

He explained that the commercial area is divided to 15 shops and four big stores, adding that the project is being developed within two years and will be marketed in three phases.

Moreover, Hamza expected completing its marketing next year.

He explained that the company is seeking to contract to market a large portfolio of real estate projects, which achieve the company’s plan to provide alternatives to customers and expects to agree with about 30 developers in a year from large companies and have experience and develop projects in different areas.

“The company is working on income property activity through managing investment portfolios for customers who are buyers for investment and who rely on their own personal experience. They can choose between multiple alternatives of real estate projects offered by specialised companies and achieve higher profits according to the market studies provided by specialists,” Hamza elaborated.

He went on saying that the company has started negotiations with a group of international companies seeking to expand in the Egyptian market by providing rental space in multiple areas and selling these units to customers wishing to invest especially from Arabs who prefer to buy units in non-residential activities that provide a permanent and guaranteed return from rental value for long periods.

A large percentage of the companies operating in the market depend on previous experiences or market activity in the management of their projects. Some of them are subject to difficulties during the various development stages of the projects, according to Hamza.

He said that proactive studies and determination of market trends and needs before obtaining land for the development of a project is imperative, in light of the great competition in the market and successive changes in the use of technology and management systems and marketing.

Moreover, he stressed that the currency difference and devaluation of the Egyptian pound value represents an advantage of Egyptian real estate abroad and the exploitation of this contributes to bring large investments; however, it requires a proper promotion abroad.

He added that the government strongly supports this trend and has taken several measures, including participation in specialised international exhibitions.

“The company plans to participate in several exhibitions during the first year of its establishment between Egypt and the Gulf countries and will start with the Next Move exhibition in Cairo in October and then will participate in Cityscape in March,” he noted.

Additionally, Hamza said that the competition in the New Administrative Capital is settled for a number of large companies and that a number of newly established companies have difficulty in marketing projects, especially with the conditions set by the Administrative Capital for Urban Development company in terms of payment of land value and implementation within three years. Those developers had to develop a plan for cash flows and calculation of development needs and expected competition.

He stressed that the real competition is in El Mostakbal City project, which includes a group of senior developers in the market and each of them offers a distinctive product and that the sales of companies in their projects in the city are close in contrast to the projects of the New Administrative Capital.

Hamza explained that the New El Alamein city represents a real opportunity for investment in the coming period, whether for developers or customers, and that the prices offered by the units of City Edge project, “North Edge” in the city is convenient according to the cost and expected demand on the city.

Meanwhile, he added that the great support of the state for the fourth generation cities accelerates their development and creates promising opportunities for developers including the new capital, New El Alamein, and New Mansoura. However, successful investment requires a product that suits the target customers in terms of architecture, prices, and payment facilities without prejudice to companies’ profits.

He said that the governorates of Upper Egypt include significant investment opportunities in real estate sector and that some developers have a desire to invest in such region. The Ministry of Housing has called on developers more than once to develop projects in new cities extending in the Republic instead of large competition in cities near to the capital.

Investments in Upper Egypt requires more clear information and feasibility studies about the available investment opportunities and client needs in these areas, besides their purchasing power, in addition to providing lands in affordable prices and payment methods comfort developers and promote this region like new capital and New El Alamein.

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