Haitham Abdel Azim, CEO of Ora Developers Egypt, revealed that his company launched its new project, ‘Silversands’, with targeted sales of EGP 25bn.
He told Daily News Egypt that the Silversands project covers an area of 550 feddan on Egypt’s North Coast, and the project extends on a 1-kilometre long waterfront. It is located at Kilo 220 on Alexandria-Matrouh Road, next to Almaza Bay on the North Coast.
He continued, that the project includes 2,500 fully-finished units, with areas ranging between 80 and 500 square meters, and the company aims to achieve EGP 25bn of contractual sales from the project.
He explained that the project will be implemented in 3 phases over 5 years, and the first phase is scheduled to be delivered in the summer of 2024.
According to Abdel Azim, Ora Developers plans to invest EGP 7bn in the first and second phases, with a total of 1,200 fully finished units. The first phase includes 600 units, with investments of EGP 3.5bn, and the second phase will be implemented with EGP 3.5bn of investments.
He pointed out that the project features a wide range of services, including a hospital, playground complex, including beach playgrounds and sports clubs. It also features a commercial services area that represents an attraction. The company aims to build an integrated sustainable city that can be operational for at least 6 months during the year.
Ora Developers intends to launch ‘Silverands Downtown’ as a service area in the project, and the second phase of the project during the coming summer, Abdel Azim revealed.
He added that the company intends to inject EGP 5bn annually into the construction of the project, and the entire project is scheduled to be developed in three phases, including 150 feddan as a first phase, 200 feddan as a second phase, and 200 feddan as a third phase.
He continued, and the company is awaiting obtaining licenses to start implementing the project at the beginning of 2022.
He pointed out that the company has paid the entire value of the land to the New Urban Communities Authority, as the company enjoys large financial solvency, covering 30% of the implementation of the project’s construction, in addition to linking the implementation with sales.
He pointed out that the company offers customers payment facilities, with a 10% down payment and instalments over 6 years.
Moreover, Ora Developers is considering signing a cooperation protocol with the Commercial International Bank – Egypt (CIB), to provide real estate financing services for its two projects ‘Zed Sheikh Zayed’ and ‘Zed East’ in New Cairo. This comes within the framework of the Central Bank of Egypt’s initiative. The protocol would allow the customers to pay 20% of the unit value, while the remaining amount will be paid in instalments over 20 years.
Abdel Azim told Daily News Egypt that Ora Developers aim to achieve sales ranging from EGP150bn to EGP 160bn in the company’s 3 real estate projects in the cities of Sheikh Zayed, New Cairo and the North Coast.
He noted that there is a great demand for the project from Arabs and Egyptian expatriates, especially the Gulf countries. Accordingly, the company is planning to participate in the Cityscape Global exhibition in the UAE, to meet the growing demand from the Gulf countries for Egyptian real estate.
“The demand for the North Coast, in particular, has been higher in the recent period, whether from Egyptians residing in the country or working abroad, in addition to foreigners,” Abdel Azim said.
He added that the company has a marketing plan during the coming period that depends on focusing on the sales of medical units in the Zed Sheikh Zayed project, and the commercial units in the Zed East, in New Cairo.
He indicated that Ora Developers signed contracts worth about EGP 7bn for the construction of the Sheikh Zayed project with 3 companies, including Orascom and Redcon.
Abdel Azim ruled out the listing of Ora Developers on the Egyptian Exchange in the coming period, pointing out that it could be offered within the next five years.
He pointed out that the government’s tendency to oblige real estate developers to build at least 30% before marketing their projects, will improve the regulation of the real estate market in the North Coast.
This will prevent land hoarding, and accelerate the pace of development of this area to operate for the longest possible period of the year, not just two months in the summer.
He explained that this decision did not affect the company’s projects because it seeks to build and deliver them as soon as possible and that the construction rates in Zed Sheikh Zayed have reached more than 50%.
He added that the decision will not affect government agencies or companies that have solvency or a land portfolio.
He continued, that the developers’ tendency to put forward their projects after implementing 30% of the project will lead to an increase in unit prices and a reduction in repayment periods to less than 6 years.
In a related context, Mohamed Sheta, CFO of Ora Developers, revealed the company’s plans to triple its current capital of EGP 700m to reach EGP 2.1bn before the end of this year.
Sheta told Daily News Egypt that the capital increase subscription will witness the entry of a new strategic investor with a development background, which will be announced within two months. He pointed out that that the issue is still under study and in the negotiation stage.
Moreover, he explained that the company is currently fully owned by the Sawiris family, explaining that the family’s vision for Ora is that it is the investment arm in the field of real estate development.
He pointed out that the company aims to launch several branches of Zed Sports Club in different locations during the coming period, especially the governorates of Upper Egypt. This comes as a result of the high investment return in this sector, along with diversifying the investment portfolio between sports, residential and commercial products.
He added, the company owns two sports clubs in New Cairo and the 6th of October City, with investments amounting to EGP 2bn, EGP 1bn each.
“The main branch of the Zed Sports Club, which is located within the ‘Zed East’ project, will be established on an area of 54 feddan, in New Cairo. While the second will be built on an area of 25 feddan in 6th of October City, and is scheduled to be opened in 2023,” Sheta concluded.