Real estate company Ora Developers Egypt is planning to establish a sports club in the company’s Silversands project in the North Coast. The club will boast numerous sports facilities, a medical area, and a group of playgrounds in its new project, according to Haitham Abdel Azim, CEO of the company.
He told Daily News Egypt that Ora intends to commence Silversands construction in the first quarter (1Q) of the current year.
Please elaborate on the Silversands project and its updates. When will Ora begin constructing the project and what is the value of targeted investments in the project this year?
Silversands, a 506-feddan area of land in the North Coast, will serve as an all-year-round go-to beach destination for all types of vacationers. It lies across a 1- kilometre seafront and is strategically located on Egypt’s sunny North Coast.
The project will comprise a variety of units such as villas, twin houses, and chalets. Most of the units will have a sea view, while others will have a panoramic view of lagoons.
We are also planning to establish a sports club in Silversands with numerous sports facilities, a medical area, and a group of playgrounds in its new project.
Moreover, the project will include the implementation of a spectacular hotel and a medical facility to ensure the provision of all required services for sports teams wishing to set up camps inside of Silversands. We envision a self-sustaining community that accommodates all basics of life while providing a relaxing environment for all our vacationers.
The estimated construction value is EGP 45bn, with a proposed commencement date of 1Q 2022 and delivery of the first phase in 2024. Our estimated completion date is 1Q 2027.
Did the company offer the second phase of the project after a successful sell-out of the first phase?
The second phase hasn’t launched yet, but it will soon.
The company is contracting with CIB to provide mortgage finance for project units. Does the company plan to contract with other banks to finance new units?
In 2020, we signed a long-term syndicated loan contract amounting to EGP 2.5bn with four of Egypt’s leading banks — Bank of Egypt, Emirates NBD, Export Development Bank of Egypt, and Housing and Development Bank — for eight years. The purpose of the loan is to finance part of the construction costs of the first and second phases of the ZED Sheikh Zayed project.
What was the value of the company’s credit portfolio last year, and is it targeted to increase this year?
Our current credit portfolio is EGP 2.5bn, and we’re always seizing every opportunity we can to expand it.
What is the value of achieved sales in 2021 and the targeted sales in 2022?
In 2021, we were able to achieve 150% of our annual target and sell around 1,500 units, and this is also due to our recent launch of Silversands in the North Coast. We anticipate an increase in sales in 2022 dependent on future projects and phase launches.
What is the value of investments the company plans to direct in its projects in the current year?
We anticipate that we will continue to invest adequately in construction while we continue to work on our projects throughout 2022. We have already signed two partnership agreements with Redcon Development and Rowad Modern Engineering to complete the construction of Phase 1B of ZED Sheikh Zayed.
We will adequately assess any additional contracting and investment opportunities as they arise in 2022.
Previously, you announced that Ora was in negotiations to contract with an international company to operate towers in ZED projects. Did you reach an agreement and what is the name of the operator?
We are still in talks regarding the agreement. When the right opportunity and agreements fall into place, Ora Developers will strategically evaluate and announce the latest updates in our developments.
What do you think of the presidential decision to prohibit marketing projects that have not reached 30% completion yet?
We have full faith in the notion that decisions taken by the Egyptian government are all for the ultimate benefit of customers as well as developers that operate in Egypt alike.
An example of this is the low-interest rates imposed by the Central Bank of Egypt early on in the pandemic, which encouraged all investors and motivated them to borrow due to the interest rate cut that supported investors’ loans in all economic sectors.
Because of such beneficial measures by the government, we believe that the demand for real estate investment will surely continue to rise.
What is your expectation for price hikes in the local real estate sector this year?
The real estate market has faced several ups and downs over the years. In 2021, it has remained generally stable, but prices have actually gone up towards the end of the year due to the rising prices of construction supplies.
We expect real estate prices to rise by 10-15% over the coming period due to increased demand following market stagnation caused by the coronavirus pandemic.
Ora Developers usually raises prices from 15% to 20% with the introduction of each new phase, which showcases the investment advantage of the project and the new phases introduced.
After an Emirati fund acquired 25% of Gemini Holdings, does this have an impact on the company’s projects?
In December of 2021, Gemini Global Development Egypt, Ora Developers’ mother company, received a $100m investment from Abu Dhabi’s Chimera as a capital increase in Gemini Global Development in return for a significant minority equity stake in Gemini.
The capital increase will further support the expansion and development of Gemini’s Egyptian real estate operations under Ora Developers.
Since our inception, our goal for Ora Developers was to continuously seek opportunities that will help us expand our offerings to various markets while partnering with leading global investors, contractors, and retailers.
We are committed to investing in real estate developments across Egypt, creating truly unique signature projects throughout the country. Our partnership with Chimera will ensure we deliver on our commitment.
