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SODIC (Sixth of October for Development and Investment Company) has started construction of four hotels in North Coast and West Cairo containing a total of 500 keys, the company’s general manager said.
Ayman Amer told Zawya Projects that the hotel projects are expected to help double the contribution of the hospital and retail business to overall revenues from the current 7 percent to approximately 15 percent by 2027.
In August 2023, SODIC signed a partnership agreement with Nobu Hospitality to establish two ‘Nobu’ branded hotels within in its projects in New Zayed, West Cairo and in the North Coast.
Speaking at a media round table on Wednesday, Amer disclosed that the company has completed the development of approximately 30 percent of its new land portfolio in East and West Cairo and the North Coast.
He stated that the current land portfolio for ongoing projects amounts to around 1,700 acres, including 750 acres in the North Coast, 500 acres in West Cairo, and 450 acres in East Cairo. Additionally, the company is actively seeking land in East and West Cairo to expand its land bank.
Elaborating on the company's two new projects in New Zayed, he said ‘The Estates’ project covers an area of over 630,000 square metres (sqm) and consists of 446 units. To date, 205 units have been delivered since November 2023, which represents approximately 50 percent of the project. He also mentioned that the project’s commercial component spans 2,751 sqm.
As for the second project ‘VYE,’ Amer said the 464-acre project, which is being implemented in partnership with the New Urban Communities Authority (NUCA), includes more than 5,000 units.
He said SODIC is targeting the delivery of 1,991 units of VYE between 2025 and 2026, with the initial phases set to be handed over in the second quarter of 2025. He also revealed that the project is 45 percent complete.
Amer further said the company intends to sign construction contracts worth around 10 billion Egyptian pounds ($324 million) during the current year, compared to approximately EGP6 billion ($194 million) in the previous year.
The EGX-listed developer’s revenues increased by 32 percent on an annual basis in 2023, reaching EGP10.33 billion ($334 million). Meanwhile, the company's consolidated net profit after taxes and minority rights soared by 164 percent on an annual basis to EGP1.37 billion ($44 million) for the same period.
SODIC is majority owned by the Abu Dhabi-based consortium of Aldar and ADQ.
(1 US Dollar = 30.91 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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