Arab Developers Holding announced in a press conference last week launching two new brands in Egypt to continue and further develop its regional real estate business.
The new brands are Nyoum, which is intended for residential projects developed by the group, and Sia, which is dedicated to coastal projects.
The press conference also included discussions on the developments that the company witnessed during the past two years in addition to the most prominent features of its upcoming plan for the coming period.
Chairperson of Arab Developers Holding Gamal Fathallah confirmed that the company has a new business strategy based on several pillars, most notably, raising commitment with its customers, maintaining their confidence, and raising their level of satisfaction.
“In addition to continuing to develop our current projects, we are seriously studying and looking forward to new investment opportunities that are feasible and profitable, and all our work axes must be accompanied by innovation and creativity in every detail,” he said.
“With the entry of Arab investors to the company’s shareholders’ structure, it was decided to change its name from Porto Group to Arab Developers Holding, in line with the vision of the new board of directors and desire for formal and fundamental change that would contribute to enhancing the company’s reputation in the real estate market.”
He highlighted that the company has taken two years since the entry of new Arab partnerships for administrative restructuring and the development of a new specific workplace strategy known to all parties, starting from the top management and down to all employees to ensure that everyone works with one clear, unified vision.
He disclosed that the company’s new business strategy led to a shift in results, going from EGP 9m in losses during the first nine months of 2020 to record EGP 91m in profit in the same period for 2021.
He pointed out that the company’s total projects portfolio includes 15 projects, 10,500 sold out units, and 7,500 delivered units.
The company’s total land bank includes 5.27m sqm, consisting of land plots that are 100% owned by the company and some are revenue shared project partnerships.
He disclosed that since the company’s inception, it has invested over EGP 10.5bn to complete around 31% of its total work in progress across all of its local and regional projects.
Fathallah stated that the company did not focus only on investment and development in the Egyptian real estate market but had set its sights on external expansion and headed to promising markets in the region, such as Morocco and Jordan.
He went on to say: “The company has developed various projects across Egypt and decided to take our experience abroad to launch and relaunch our two promising projects Sia Aghadir (formerly Porto Aghadir) in Morocco, and Sia Dead Sea (formerly Porto Dead Sea) in Jordan.”
Furthermore, he explained that the company’s current and future policy puts the customer first in mind, focuses on meeting their current and future needs, respects all customers’ rights, and achieves their expectations and trust in the company.
Moreover, it maintains quality as a basic standard that the company does not waive in all its projects in order to maintain its credibility and clients’ confidence.
“The Arab Developers Holding’s current shareholder structure includes the Emirati Asmak Company with 19.7%, investor Abdul Salam Masood Abdel Karim with 8.5%, and some Arab and Egyptian individuals. Additionally, the company aims to record sales exceeding EGP 2bn in 2022 based on the diversity of the company’s products and the provision of various payment plans as well as the continued presence of strong demand for property.”
“Above all, the company is open to all forms of financing in case of a need for external financing, and in general, we start our projects with self-financing. In the case of a need for new financing, the company studies all available alternatives and chooses the best fit for it,” he explained.
Furthermore, Fathallah disclosed that it is planned to deliver more than 2,000 units during the current year, adding that “delivery is the top priority for the company.”
He stressed that the Central Bank of Egypt’s (CBE) mortgage finance initiative at an interest rate of 3% is one of the distinctive mechanisms carried out by the state to bridge the gap between the purchasing power of customers and property prices and enables a large group of citizens to afford housing units with their financial capabilities.
The real estate market would see price increases during the next stage due to the high cost of the construction process, he predicted, concluding that his company has a plan to deal with these price changes by offering various and flexible payment terms to its customers along with offering prices that achieve a strong growth rate for customers in the value of their units.
Arab Developers Holding’s CEO Ayman Bin Khalifa stated that the new management’s workplace strategy focuses on several axes, the most important of which is prioritising delivery.
Bin Khalifa added that the company plans to deliver more than 2,000 units in its projects during the current year, noting that the company plans to inject investments in construction worth EGP 1.5bn in 2022.
He pointed out that the Nyoum brand now includes Nyoum October, Nyoum Pyramids, Nyoum Assiut, Nyoum New Cairo, Nyoum Al-Mostakbal, and Nyoum Cairo Residence.
Meanwhile, the Sia brand now includes Sia Villagio in Golf Porto Marina North Coast, Sia Matrouh, Sia Lagoon, Sia Island 1, and Sia Island 2.
The company’s CEO elaborated that since the new management’s takeover of Arab Developers Holding, it has focused on restructuring the group administratively and developing a strong work strategy that enhances its position in Egyptian and regional real estate markets along with expediting delivering delayed units due to circumstances beyond the company’s control, such as the coronavirus pandemic.
“Despite this crisis, construction rates and delivery according to clients’ testimony were the highest in the company’s projects during the past year. Accordingly, the company began scheduling delayed units and delivering more than 1,200 units to customers, which won the satisfaction of a large number of the company’s clients, who have already received their units, and others who are waiting for their delivery dates, which reflects their confidence in the new management and its working mechanisms,” Bin Khalifa explained.
He pointed out that the company’s portfolio of projects includes various projects in multiple areas that achieve geographical diversification in the local market, including the Nyoum Al-Mostakbal project, which overlooks Al-Amal axis, the main entrance to the administrative capital from the Suez Road. The development is located on 683,000 sqm and encompasses villas, buildings, green spaces, and golf courses.
Spanning over 390,978 sqm in New Nasser City (Al-Hadaba), the Nyoum Assiut project is an integrated project that includes apartments, villas, shops, a hotel, a school, and clinics. The development was launched in 2020.
The Nyoum October project was launched in 2013 on an area of 1.381m sqm. The project includes the largest fountain to be opened soon, the largest open mall, in addition to a hospital, a club, and three schools.
In the meantime, the Nyoum Pyramids project embraces luxury apartments with swimming pools, a social club, a tourist walkway, and a hotel with a capacity of 44 rooms. The project is located on the Cairo-Alexandria Desert Road, near the Grand Egyptian Museum and Sphinx International Airport.
He added that the Nyoum New Cairo project is a residential tower that includes luxury apartments and a huge commercial mall. This is in addition to the Nyoum Medical Hub, which is a medical project located near New Cairo.
As for the projects bearing the Sia brand, there is Sia Lagoon, which is situated within the Golf Porto Marina project on 41,056 sqm. The lagoon was opened last summer and was implemented by Crystal Lagoons.
There is also the Sia Matrouh project, which is part of Porto Matrouh, and the Sia Villagio project in the North Coast, which includes 539 villas and 42 shops.
Outside Egypt, Bin Khalifa explained that the company is developing the Sia Aghadir and Sia Dead Sea projects, and that the Sia Aghadir project spans over 1.2m sqm. It is an integrated residential, tourist-entertainment project.
The Sia Dead Sea project stretches over 19,534 sqm, and the company has delivered its first phase, and the second phase will be launched soon, which will include 440 apartments, 120 hotel rooms, and 40 shops.
Egypt’s real estate market is characterised by strength, regardless of the size of the challenges it faces, which supports the companies’ plans for continuous expansion in this promising market as well as the continued existence of investment opportunities resulting from comprehensive and unprecedented urban development undertaken by Egypt, he said.
Moreover, the real estate investment and construction sector accounts for about 15% of GDP, he concluded.
