CAIRO: Sixth of October for Development and Investment Company (Sodic) recorded a five-fold increase in year-on-year revenues to LE 321.25 million for the first nine months of 2007.
Releasing its third quarter results earlier this week, the company reported that net profits increased by more than 17 times, reaching LE 158.17 million. Gross profit is up eight times to LE 180.33 million.
“The solid financial performance is a reflection of the improved economic and investment climate in Egypt. We are optimistic about the long-term prospects of the sector and are capitalizing on the strong demand for residential, retail and office property, Ahmed Dabbous, Sodic’s chief financial officer, told Daily News Egypt.
Sodic owns 4.8 million square meters of land, split between the Sheikh Zayed area (3.85 million square meters) and Kattameya (984,000 square meters). Both properties are strategically located at the center of the two emerging Cairo suburbs.
The Sheikh Zayed property is located on the Cairo-Alexandria Desert Road, only five km past the toll station. The main Kattameya plot is on Road 90, the area’s main avenue, and adjacent to the American University in Cairo’s new campus. The company has three main large projects under development.
“Our entire land bank is currently at different stages of development in a diversified set of profitable projects serving the different demand patterns within the sector and generating significant recurrent leasing income for Sodic, Dabbous said, “Our target is to complete these projects over the next eight years.
Allegria, located in Sheikh Zayed, is an upscale residential project being developed over 2.38 million square meters, featuring over 1,000 villas and townhouses with more than 400,000 square meters of built-up area surrounding Egypt’s first signature golf course by Greg Norman.
Sodic has enlisted the talents of locally and internationally renowned designers and developers. “Reservations of Allegria’s properties started in mid-2007 and already some 60 percent of the property has been reserved, which translates into some LE 1.7 million of prospective revenues, said Dabbous. Units are expected to be ready for delivery within the next four years.
The company’s two other main projects entail developing two city centers for Cairo’s growing suburbs in Sheikh Zayed and Kattameya. The projects are being developed in cooperation with Solidere of Lebanon, best renowned for their successful redevelopment of Beirut’s city center.
The plan is to develop two fully-integrated city centers serving the needs of the communities in those areas. Total built-up area for those projects is forecast to be in excess of three million square meters. With master plans currently being finalized, sales are expected to be launched in early 2008.
The company plans to expand its land bank by an additional two to three million square meters.
Sodic is currently one of Egypt’s leading real estate developers with a market capitalization of approximately LE 6.5 billion. It is one of the most actively traded stocks on the Cairo and Alexandria Stock Exchange.
