Egypt's SODIC gross contract sales grows 2% to $471mln

Misses guidance set at $508mln, at a growth of 15 percent

  
A worker wearing a protective face mask stands on a building under construction in the New Administrative Capital (NAC), east of Cairo, amid concerns about the spread of the coronavirus disease (COVID-19), in Egypt May 6, 2020.

A worker wearing a protective face mask stands on a building under construction in the New Administrative Capital (NAC), east of Cairo, amid concerns about the spread of the coronavirus disease (COVID-19), in Egypt May 6, 2020.

REUTERS/Mohamed Abd El Ghany

Egyptian real estate developer SODIC said on Sunday that gross contracted sales rose 2 percent year-on-year to reach 7.4 billion Egyptian pounds ($471 million)

Of this 1,361 units sold were residential, which clocked a 19 percent y-o-y rise, the company said in a statement. Non-residential sales accounted for 3 percent of the developer’s gross contracted sales in 2020 versus 17 percent in 2019, in line with the company’s strategy to grow residential sales while retaining prime commercial assets for lease.

SODIC’s West Cairo developments accounted for 61 percent of gross contracted sales in 2020, while East Cairo projects contributed 39 percent.

CEO Maged Sherif said: “The company’s proven track record, strong financials and disciplined approach have allowed us to safely weather a very difficult year. We are very pleased to deliver a strong set of results which comes as a testament to SODIC’s credibility and leadership in the market.”

In its guidance for 2020, the company had said it was targeting 8.4 billion, at a growth of 15 percent.

Sherif had said late last year that the coronavirus pandemic had made it hard to achieve the contracting target for 2020, Reuters reported.

In its last financial statement, the developer had said there were cancellations worth 479 million pounds in the Q3-2020, or 22 percent of the quarter’s gross sales.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com 

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