Egypt-based Polaris Parks announced its entry into the country’s residential real estate sector through the launch of Polaris Homes, marking the company’s diversification beyond industrial parks development.

The new company also unveiled its first residential projects - Özel Villas and Özel Residences - in the Sheikh Zayed area of 6th of October City.

Osman Evren Arıkan, Managing Director of Polaris Parks, said the company is leveraging its 20-year integrated industrial development experience to expand into integrated residential communities.

“We are proud to do so as the first Turkish real estate developer entering the Egyptian residential market at this scale,” he said. “This expansion is a natural evolution of our role in developing integrated industrial communities.”

General Manager Bassel Shoirah added that the two projects feature Turkish-inspired architecture and low-density masterplans with extensive green spaces and landscaping. Hossam Aboul Fotouh is the main consultant for the projects.

Investment and expansion plans

Shoirah said the two projects span nearly 18 acres and are targeting combined sales revenues of between 2.5 billion and 3 billion Egyptian pounds ($48 million - $58 million). They are scheduled to be delivered within a timeframe of three years, backed by flexible payment plans of up to eight years.

Polaris Homes plans to invest around EGP 5 billion ($96.67 million) across current and future residential projects, Shoirah disclosed, adding that the company plans to acquire new plots approximately every six months as part of its land bank expansion strategy.

The company is also studying two additional residential developments in West Cairo.

Shoirah said Polaris Homes will rely heavily on self-financing to implement its projects, benefiting from the confidence of Polaris' foreign shareholders in the Egyptian market. Moreover, the company shareholders have also insisted on securing full funding for a project before launch to ensure construction can be completed even if only a single unit is sold.

Polaris Parks has not resorted to bank financing even for its industrial projects, according to Shoairah, who noted that project execution and on-time delivery is supported by the company’s financial solvency.

Polaris Parks was established in 2007 as a partnership between the Turkiye’s Polaris International Industrial Estates, Egypt’s SIAC Holding Group, UK’s Memphis Capital, and Saudi Arabia’s Al-Zamil Group.

Since its establishment, Polaris Parks has invested approximately $560 million in developing four industrial parks spanning 10 million square metres (sqm) in the 6th of October and Sadat cities. These industrial parks have attracted nearly $4.9 billion in local and foreign investment and currently host more than 1,500 factories, the company said.

(1 US dollar = 51.72 Egyptian pounds)

(Reporting by Marwa Abo Almajd & Eman Hamed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.