Ahmed El-Adawy, CEO of Inertia Egypt, a real estate developer, said that the company is focusing on increasing its implementation and delivery rates of its projects as it plans to increase the number of delivered units this year to 1,600.
He added that the “Jefaira” project accounts for the largest volume of deliveries in the last quarter of 2022. As the company’s main project in the North Coast, on an area of 5.8 million square metres, Jefaira comprises separate villas overlooking the sea, twin houses, townhouses, villas, chalets, apartments, and studio apartments. The built-up area of the project is 20%, and the rest is open parks and facilities for customers.
He pointed out that the company launched the trial opening of the project’s beach this summer. The beach will be fully operational next summer, with about 600 units delivered this year. He explained that the North Coast is on its way to full operation all year around, as the state plans, which will be done gradually.
He explained that a new phase was launched in the Jefaira project, called “Ayla”. It includes 790 units overlooking a lagoon and swimming lakes, on an area of up to 40,000 square metres, which guarantees a wonderful and distinctive summer experience for customers.
The total portfolio of the company’s projects includes eight projects, of which four projects are residential and commercial in Cairo and the Red Sea. These have been completed and delivered. Four other projects are currently being implemented. He said that the company’s portfolio has great diversity in terms of activities and locations, which meets the needs of existing and target customers of the company.
He explained that the company has completed the delivery of the “Soleya” project in West Cairo. It is an integrated residential project, located on an area of 19 feddan, and includes apartments, townhouses, twin houses and separate villas, with a total of 172 units, and the built-up area is only 22% of the project’s total area.
He added that the first and second phases of the “Joulz” project were delivered with a total of 530 units. It is an integrated residential project located on the Cairo-Alexandria Desert Road, and the third and fourth phases of the project are being implemented. It comprises 1,152 units, including townhouses, twin houses, and separate villas of various sizes, and the company has started delivering the units of this project.
The G-Cribs Phase I & II project in El Gouna, an integrated residential project in the Red Sea, is built on an area of 42,000 square metres, and the project includes 330 units of varying spaces, including studio apartments. The project offers its residents an opportunity to live a life full of simplicity and luxury.
He pointed out that the company will start delivering the units of the “Brix” project next year. It is an integrated residential project that includes 194 units, and is located on an area of 44,000 square metres. The construction rate is 25%, and it includes various units with varying spaces, from 82 to 275 sqm.
He explained that the company has managed to deliver the “Veranda” project in the Sahl Hasheesh area, which is an integrated project that includes 183 units. It has also completed the implementation of Medipoint, Sheikh Zayed. It is a commercial medical project that comprises 29 clinics on an area of 3,000 square meters in Sheikh Zayed.
The company has also completed the implementation of the West Hills project, which is an integrated residential project that includes 98 units, and is located on an area of 32,000 square meters, and includes various units between apartments and duplexes.
He pointed out that the construction cost of the projects increased by 18-24% as a result of the high prices of raw materials, the shortage of some of them, the high price of the dollar against the pound, and the reliance on hard currency to import raw materials from abroad, all of which affected the cost of implementation.
He explained that the company has a total customer base of 4,000 customers in its various projects. All of their needs are provided in the company’s projects that have been delivered and housed.
He added that the company has various service providers in its projects, including security, maintenance, cleanliness and agriculture, so that there is a specialized department to provide all customers’ needs within the project. The company will also launch another company specialized in managing its projects to maintain its value and investment quality.
He stressed the importance of the management component in maintaining the investment value of the company’s projects, as well as preserving clients’ investments in their units in the company, which supports the company’s future direction to launch a specialized management company responsible for its projects in full, especially Jefaira – the company’s largest project.
Ambitious investment plan
He said that the company has a strong investment plan to achieve its goals in implementation and delivery. The total value of contracts is EGP 2bn, to be implemented within 18 months of their signature, including a contract with Redcon, as the company focuses on increasing the percentage of deliveries in its projects.
He pointed out that the company focuses on the elements of sustainability in its projects in order to conserve resources in general, as well as rationalize energy consumption for customers and make their lives easier.
He pointed out that the availability of services in the company’s projects is an essential element. The “Jefaira” project in the North Coast will initially operate its services for six months. On the other hand, the hospital will operate all year long to serve customers living in areas inside and outside the project. He noted that the availability of services is essential for making the North Coast a lively area throughout the whole year, not just the summer.
The CEO of Inertia stated that the company signed a cooperation protocol with Banque Misr, to get a medium-term Islamic financing of EGP 1.1bn, and allocate the loan to the Jefaira project with payment facilities for eight and a half years. Additionally, a financing contract was signed in the amount of EGP 575m with Banque du Caire, directed to the first phase of the project, which has been fully paid. About 50% of this loan has been paid off.
He stressed that the company is open to all investment systems and willing to consider any offers that are in the company’s best interest.
Review of price changes
He noted that the company does not add all the increase in the implementation cost to the selling price, as the company bears part of this increase. The increase the company adds to the selling price of its projects ranges between 10-15% only.
He added that the company is constantly reviewing economic variables and their impact on the cost of implementation and selling prices, with the aim of achieving a balance between the selling price and the cost of implementation and preventing any gap between them, in addition to quickly making marketing decisions related to the number of units to be sold or to stop the selling in some projects. This ensures high quality of the projects implemented.
He noted that the correct pricing and selection of sales timing and payment systems available to customers are essential elements for the success of any project. The success of these projects means the success of the company as a whole, especially in terms of implementing projects and delivering to customers without any risks. This is especially important during this phase where the world is seeing rapid global changes across all economic sectors.
Cityscape Egypt 2022
He stressed that Cityscape Egypt is one of the real estate events that the company is keen to participate in, in order to communicate directly with customers and introduce the most recent developments and updates at the company to the market. During the exhibition, Inertia will be launching the units of its Ayla project.
He pointed out that the company offers competitive prices and special offers during the exhibition, and the company targets contractual sales of EGP 500m during the exhibition’s activities.
He explained that the rate of external marketing in the company’s projects reaches 13%, which includes Egyptian clients working abroad and non-Egyptian clients, and this percentage was reached through external marketing.
As for the beginnings of Inertia, the company started with only two employees. Today, it has more than 400 direct employees. It also started without any resources, whether cash or land, in 2007. However, through its continuous work to form a successful model of entrepreneurship, it now has a land portfolio of 7 million square metres, of which 1.8 million square metres are currently under development.
He pointed out that the nature of the real estate market requires access to land and financing, noting that value of lands has the lion’s share of any project’s cost. He added that the company has succeeded through its distinguished business model to obtain and develop lands according to various systems, which led to the success of this experiment and its repetition in many mega projects.