The Smart Village Development and Management Company plans to sell parcels of land ranging from an area of 1,000sqm to 4,000sqm. The planned sales are part of the company’s plan to increase investment in construction in eastern Cairo in 2016.
Daily News Egypt spoke with the chairman and CEO of the development company, Adel Danish, regarding his plans for Smart Village in 2016
What is the total area of land on which development work has been conducted in Smart Village and what is the total volume of investments in the project?
The total area of lands held in Smart Village isestimated at 570,000sqmso far,with investments up toEGP 6bn. The price ofland per square meter ranges between EGP 6,000 and EGP 10,000, with the variance in price according to whether utilities have been provided.
Does the company conduct the sale or renting of administrativelandsin the Smart Village in US dollars?
Transactions concerning the sale or renting of administrative buildings in Smart Village are conducted in Egyptian pounds. For the rental of lands, rental companies charge an agreed upon annual increase ranging from 5 to 10%.
How much do lands cost inSmart Village?
The cost of landvaries according to the location, the view, and the additional services we offer to the customer.For example, the costof landthat overlooks the conference hall and the artificial lake differs from the cost of the land which overlooks a village in the Abu Rawash area. The cost of lands ranges from EGP 5,000to EGP 10,000 per square meter.
What competitive advantages do the administrative buildingsat Smart Village hold?
The cost of land inside Smart Village is the lowest in the local market, compared to the cost of other administrative sites in surrounding areas.
In addition, Smart Village has other competitive advantages. It islocated away from crowded Cairo, providessecurity services and parking spaces free of charge, as well as offeringenergy-efficient smartlighting.
Smart Village provides advanced infrastructure for investment and an adequate working environment for workers and students, highlightingthe distinct landmarks of the Smart Village which were designed by renowned designers.
Smart Village has become a business community that houses administrative headquarters for a number of the largest international companies in the field of communications and information technology as well as for a number of major banks, and some government bodies.
Do you have administrative spaces forsmall- and medium-sizedenterprises (SME)?
We already have furnished and equippedoffices with an area as small as20sqm with all the facilities and services inside the Smart Zonto provide a suitable working environment to small- and medium-sized companies.
How can medium-sized companiesbenefit from small administrative spaces?
The idea of offering administrative offices forsale or rent to local or foreign companies givesa chance to the investors to discover investment opportunities in the local market.
It alsosaves expenses that companies might spendon overhead for a large office space. We offer office sizes ranging from200mto 500m, sizes that are suitable for medium-sized local businesses.
Have Egypt’seconomic conditions impacted the development ofSmart Village?
Smart Village has not been affected, as it was able to overcome the difficultiesexperienced after the January 25Revolution. The communityprovided security for theinvestment companies operating in Smart Village with electronic gates and surveillance cameras.
The village retained the confidence of investors and international companies, servingas a successful administrative headquarters.In addition, foreign companies operating in Egypt are committed to their investments in the Egyptian market.
We are currently studyingrequests for the purchase of administrative units ranging between 20sqmand 4,000sqm in size.
In the last five years, Smart Village’s occupancy reached85% of the administrative area’s total capacity. Etisalat Misr built a new administrative building on an area of more than 60,000sqm, consisting of six floors, of which three floors are underground.
In addition, the Egyptian Naval Academy,the Armed Forces Engineering Authority, and e-financehavefinished the construction of their buildings in Smart Village. Other companies have expanded their administrative headquarters with four administrative buildings were constructed on an area of 25,000sqm.
Does the companyintendto expand abroad?
We have plans to expand regionally.We currently participateinmanaging and supervising construction of a financial community, which is similar to Smart Village,in Jordanas well as similar projects in Uganda and Tanzania.Weare studyingthe feasibility of a similar project in Tunisia.
What kind of new services would you provide to your clients?
We are currently working on developing a smart-phone application to locate company sites and transportation points for all employees and staff inside Smart Village.In addition,it will identify available means of transportation inside and outside the compound.The application will operate multiple operating systems.
What is the occupancy rate of Smart Village?
The occupancy rate of administrative areas is approximately 85% and is expected to reach 90% by the end of this year, prompting us to complete the construction phases. About 30% of the village remains vacant.
Is there any intention to participate in establishing the Egyptian Technological Areas Holding Company?
There is no clear vision about the establishment of Egyptian Technological Areas Holding Company, or about the possibility of participatingin the company, but we are ready to share our expertise in the administration.However, it is difficult to participatein financing the company because Smart Village is an administrativecompany and not a financing association.
What are the main features of the company’s strategy during 2016?
The strategic plan of the company this year includes the construction of a 4-star hotel on an area of 3,000sqmforthose working in and visitingSmart Village.
We are currently conducting astudy witha group of investors who have the expertise in the hotel sector.
The company has alsoconsidered establishing a residential buildingfor those visitorswho spend an extended period of time—ranging from oneto two months—in the community.
We plan to sella limited number of vacant plots, ranging from1,000sqmto4,000sqm at lower prices thanthe administrative compounds on the market.The company will use the revenue to establish new administrative buildings in eastern Cairo.
What are your plans to support entrepreneurship?
We cooperate with the Entrepreneurship Center at the American University in Cairo to support young people in the field of entrepreneurship. We also study cooperating with the phone-application companyRaye7to transport staff and visitors to Smart Village.
