Orientals for Urban Development (OUD) plans to develop five million square metres within its real estate portfolio within two years, with initial investments of EGP 4bn. It is also considering to launch its shares in the Egyptian stock exchange (EGX) over the next year.
Mohamed Farid Khamis, the owner of OUD, told Daily News Egypt that the projects planned to be implemented will be a high-end one.
Is the company considering to allow the entry of new developers?
The company is considering the entry of new developers to implement some tourist and residential projects planned to be implemented soon.
Does the company plan to offer its shares in EGX?
The company plans to offer its shares in the EGX next year. This will be preceded by an increase in issued and paid up capital from EGP 700m to EGP 1bn, through shareholders.
Offering shares in the EGX is one of the most suitable solutions for the company to finance future projects without borrowing from banks. However, the company has not yet made agreements with financial consulting companies to prepare the offering process.
What are the company’s plans to expand over the upcoming period?
The company is negotiating with the Engineering Authority of the Armed Forces to allocate a land of 6,000 square metres in the business and capital neighbourhood in the New Administrative Capital to build a residential tower, in addition to allocating 50 acres to implement an integrated residential complex.
The company plans to launch a new tourist project in the North Coast next month on an area of 45 acres with initial investments of EGP 1.3bn.
The project is located on kilometre 206 on the Alexandria-Matrouh road and is developed through a partnership with the land owner.
OUD plans to achieve sales of EGP 2bn from the project within 18 months from opening the door for reservations. The implementation of the project will take 36 months and will be conducted in three phases that include 800 residential units.
What are the projects being implemented by the company and the volume of its investments?
The first phase of the Oriental Coast project in Marsa Alam was completed under the name of Las Cabanas and includes 500 luxurious tourist housing units, and the Sentido Oriental Dream Hotels & Resorts with a capacity of 350 rooms and with total investments of EGP750m. 80% of the units of the first phase of the project is sold to citizens from European countries and 20% to Egyptians.
The sale of 360 units was completed in the second phase of the oriental coast, titled Matangi, with 500 units and total sales worth EGP 750m at a construction cost of EGP 600m.
The two hotels are under construction with investments worth EGP 700m, and the construction works will be completed in 18 months.
The total area of the oriental coast project is 5m square metres, with total investments of EGP 8bn, and the project is self-financed through the company’s shareholders.
The project was being implemented through five structural stages, including 8,400 units distributed on 4,200 tourist housing units and 4,200 hotel units.
The project includes 12 hotels as well as villas, tourist residences, golf courses, a downtown area, an aquapark, a conference hall, and a yacht marina.
The company is currently considering to look for shareholders to complete the development of the project stages through a partnership system as one of the financing ways to implement the project without resorting to borrowing money from banks.
The company sold 80 % of the new residential units project to Heliopolis Hills company during the first month of the beginning of reservations to customers with total sales worth EGP 420m.
Sales were distributed over the Cityscape exhibition with 60% last month, and 40% in two other exhibitions in the United Arab Emirates.
Heliopolis Hills is located in the Sixth District in Obour City, on an area of 18 acres with total investments worth EGP 550m and with 164 villas on areas ranging between 190-240 square metres.
The project is being implemented in four stages, and Yasser El-Beltagy Consulting Office is responsible for the engineering designs.
The company targets to achieve a sales value of EGP 240m in its Al Qurba Royal Residence project in Heliopolis, and ended with sales of 20% of the project units.
The company provided 4-year interest-free payment facilities, and the project targets the upper class of the residents of Heliopolis.
The company has completed the implementation of Al Baron City project for housing on the road to Qatameya on an area of 38 acres and the project includes 63 residential building with 3,700 units on areas ranging between 90 square metres and 200, and the price of a square metre per project ranges between EGP 2,450 and EGP 3,750.
The total investments of the project reached EGP 4bn, and it is implemented in four stages, including Al Baron commercial mall.
The American consulting office Well Gates took over the design and coordination of the site of the project.
He explained that the company has completed the delivery of the fountain park project in New Cairo on a total area of 55 acres. The project includes 130 luxurious villas with an average area of 800 square metres at investments worth EGP 600m.
The company has completed the implementation of the Palm Park residential project in El Shorouk city, which includes 232 units, while it also completed the implementation of the “palm suburb” commercial housing project, which includes El Shorouk academy.
The company delivered 5,550 units in its projects since its establishment in 1994 on a total area exceeding 2 million square metres.
Does the company plan to add new land to its real estate portfolio?
The company is currently looking for lands on areas of 50 to 100 acres in New Cairo and 6th of October City for the development of a housing project through partnership with the private sector.
Did the company raise unit prices in its projects after the flotation of the pound?
The company has increased the prices of its units in various projects after the flotation of the pound by 25% as a result of the price hike of raw materials used in construction at rates reaching 80%.
What is the company’s sales rate through social media channels?
The company depends on a marketing team to sell its projects, and sales of the company through social media channels represent 25% of total sales.
Is the company considering opening new branches?
The company will open three new branches in Port Said, Abbas Akkad, and Mohandessin in June, beside the two branches it already owns in the areas of Sheraton and Qatameya.
How do you see the Egyptian real estate market?
The Egyptian real estate market needs to implement several projects that address the middle and upper middle classes, where prices range between EGP 5,000 and EGP 8,000 per square metre, and areas between 70 and 200 square metres.
The company started implementing its first investment in Egypt through the establishment of the Jasmine residential project in 10th of Ramadan City, on an area of 40 acres including 360 villas and 160 residential units on areas between 150 and 300 square metres.
