Egypt's Contact Developments has started construction of its Cayo Mall project in the New Administrative Capital (NAC) ahead of a formal launch, the company's managing director said.
Khaled Al-Siofy told Zawya Projects that the mall would be formally launched before the end of the first quarter.
"We started initial construction work on the project before the official launch, which is a first in the industry, and also a measure of our credibility and the trust we enjoy among our clients," he said.
He declined to disclose the investment outlay for the project or its units.
He said Cayo Mall's launch would increase Contact Developments' portfolio of under-construction projects in the NAC to three.
On Wednesday, 23 February, Zawya Projects had reported that the developer has started construction works for its Quan Iconic Tower and Mercury New Capital projects.
"Our investments in Mercury and Quan projects exceed 2 billion pounds ($127 million)," Al-Siofy said, adding that Mercury New Capital, with a sales target of 550 million pounds ($35 million), will be completed in two years while Quan Iconic Tower will be completed in 2025 with a sales target of about 1.75 billion pounds ($111 million).
"In addition to the NAC, we are looking at the coastal cities for new projects to be launched in 2023," Al Siofy added.
Meanwhile, in a press statement on Wednesday, the company said that it had acquired three local firms operating in the construction sector - JW Constructions, DFS General Services, and Turnkey Mechanical Solution – at a total cost of 120 million pounds ($7.6 million).
Al Siofy told Zawya Projects the three companies have been acquired to advance the company's backward integration strategy, which aims to reduce risks, double the volume of business, and improve the execution of projects.
He said post-acquisition, the companies will be grouped under a new holding company, which will be listed on the Egyptian Stock Exchange within two years.
Established in 2010, Contact Developments' real estate portfolio stands at more than 6 billion pounds ($381 million), according to the press statement.
(1US Dollar = `15.74 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
