Madinet Nasr for Housing and Development, one of Egypt’s leading urban community developers, introduced the Secure Assets for Fixed Earnings (SAFE) model in Egypt. It allows customers to own fractional shares in property.
SAFE is a new revolutionary method to invest in real estate through “fractional property ownership” with attractive prices as one of the most effective and safest investment opportunities, Abdallah Sallam, President and CEO of MNHD, said.
MNHD is introducing the SAFE concept through “The Hoft” offering a safe investment opportunity in real estate by owning 4 meters and its multiples, for a competitive price and a fixed return on investment in addition to the ownership rights of an asset that can later be sold according to the market price offering with a safe and guaranteed investment.
Sallam stated: “For the first time in Egypt, MNHD introduced the “fractional property ownership” concept that was initially brought to the Egyptian market by Minka Development which was later acquired by MNHD. Spanning over 12,000 sqm built-up area, The Hoft is a hybrid property that will be operated and managed by a facility management company and it consists of serviced apartments, administrative offices, co-working spaces and a commercial plaza, all in one building.” The Hoft is strategically located in the business district inside Taj City, New Cairo. Spreading over 3.5 million sqm, Taj City is a remarkable milestone in MNHD’s long history in the Egyptian market. The flagship project infuses the attractive design of residential complexes with the best-in-class facilities, a modern lifestyle, and a spectacular green landscape.
For a limited time, customers will receive a periodic return on investment during the duration of the construction, in addition to the return on investment when the construction is completed and the facility is running up to 5% annually. To suit the diverse capabilities of customers, payment in cash or in installments is available. Sallam explained “the return on investment (ROI) in real estate is one of the most important indicators that help clients measure and track their profit over the years.”
Sallam told Daily News Egypt that investment in property is highly trusted by people and investors seeking a safe investment opportunity that can preserve and grow the value of their savings against inflation. In addition, the population growth and cultural heritage of Egyptians make real estate one of the most important safe investment vessels in Egypt. In response to market needs, developers need to diversify their products to create suitable investment opportunities for all segments of society without burdening them and initiate more flexible mechanisms to encourage clients to invest in properties.
He goes on to explain that MNHD has deployed its market expertise and knowledge of customer needs and translated it into an innovative investment opportunity built on the fractional ownership concept and introduced “The Hoft”.
“As I mentioned above that The Hoft is a hybrid property, hence investor will have a portion in all floors of the building plus a portion in the project land to guarantee investment diversity of the amount paid, meaning that if the investor bought a space of 4 meters or its multiples in The Hoft, he would own 4 meters or its multiples in residential, administrative and commercial floors of the project besides the same number of meters of the project land,” MNHD president and CEO explained.
Sallam commented on the revolutionary concept of “SAFE” saying “MNHD has a long history in the Egyptian market that extends for more than 64 years through which the company has provided unprecedented and innovative concepts and products to meet customer needs. With the advent of the “SAFE” concept, we provide an attractive opportunity to encourage investment in real estate with” fractional property ownership” to leverage the resilience of the real estate market as a safe haven for investment, and offer a trusted and effective way to grow wealth as we seek to expand the shared economy concept which relies heavily on the principle of sharing assets to rationalize resource consumption and achieving optimum utilization of assets and sustainable development”.
He went on saying, “There are several factors that customers need to take into consideration when looking for an investment opportunity in the real estate market that include the location and nature of the project, the completion of services and infrastructure, and the history and track record of the developer. All these elements can be found in The Hoft. First, the location of Taj City, where The Hoft is located, is strategically nestled in the heart of New Cairo only 5 minutes away from Cairo Airport and 5 minutes from Teseen Street and directly overlooking several landmarks in New Cairo. Second, The Hoft will be connected to the infrastructure of Taj City with access to the full-fledged services offered at the project. Lastly, MNHD as a developer has been a trailblazer with more than 64 years of legacy and growing operations in Egypt.”
Founded in 1959 and listed on the Egyptian Exchange in 1996, MNHD has capitalized on a long and successful track record of delivering world-class housing and infrastructure projects to broaden its exposure to various target segments of the Egyptian real estate market. Today, the company holds a land bank of nearly nine million square meters (sqm) anchored in the East Cairo area and with a growing presence in other regions of Egypt. The company has a total of eight active projects across two main developments; Taj City, a 3.5 million sqm mixed-use development in a strategic location in New Cairo on the Ring Road, and only minutes away from East Cairo and Heliopolis, and Sarai a 5.5 million sqm mixed-use development strategically located near the New Administrative Capital.