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‘Heliopolis for Housing and Development’ proposes Heliopark worth EGP 6bn: Board Chairman - Daily News Egypt

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‘Heliopolis for Housing and Development’ proposes Heliopark worth EGP 6bn: Board Chairman

By Sahar El-Zarkany and Ahmed Eid           Heliopolis for Housing and Development (HCHD) proposed two real estate projects at the Economic Summit, in New Cairo and Heliopolis City, with an investment cost of EGP 6bn. The company is studying two more projects in partnership with real estate developers. Engineer Ali Hassan, …


By Sahar El-Zarkany and Ahmed Eid          

Heliopolis for Housing and Development (HCHD) proposed two real estate projects at the Economic Summit, in New Cairo and Heliopolis City, with an investment cost of EGP 6bn. The company is studying two more projects in partnership with real estate developers.

Engineer Ali Hassan, HCHD’s Chairman, said the National Company for Construction and Development (NCCD) that represented his company at the Summit, proposed two projects, one of which is Heliopark in New Cairo, on an area of 1,700 acres.

He added that the company has divided the business volume in Heliopark into six phases. The first phase’s area is estimated at 310 acres, in addition to 35 acres on which a club will be established, making total investments of EGP 2bn for the entire phase.

Hassan added the phase includes commercial, administrative, entertainment and regional services units, as well as a residential neighbourhood, on an area of 130 acres.

The estimated cost to deliver sovereign and main facilities to all phases of the Heliopark project will reach EGP 811m, he added, and all costs will be divided in agreement with the Urban Communities Authority (UCA).

Hassan said HCHD is negotiating with UCA regarding subsidiary companies implementing these businesses. The companies include Mokhtar Ibrahim, Hassan Allam Construction, EGYCO, General Egyptian Co. for Buildings and Roland Construction.

Regarding the second project, Hassan explained that it is in Heliopolis City on an area of 6,000 acres. During the Economic Summit, the company announced proposing an area of 550 acres for the first phase.

The investment cost of this phase ranges from EGP 3bn-EGP 4bn, where the constructional percentage reaches 17% as it includes flood spillways.

Hassan said HCHD intends to propose two real estate projects in public auction after the Summit. The two projects are in Heliopolis City; one on 530 acres and includes districts 12, 13 and 15, in addition to a club on 74 acres. The project will include also a regional services area on 35 acres. The estimated investment cost of this project is between EGP 3bn and EGP 4bn.

He added that the second project is residential in districts 10 and 11, on an area of 300 acres, and with an investment cost of around EGP 2.5bn.

Hassan disclosed that the company received interest from real estate developers who wish to venture into a partnership, most notably Amer Group, Mountain View, Al Ahly For Real Estate Development and Wadi Degla Holding Company.

He clarified that the company will decide which of the developers will acquire the public bid, during the last quarter of the fiscal year that will end in June 2015.

He mentioned that HCHD has a land portfolio of about 3.27m metres, valued between EGP 75bn and EGP 80bn.

Hassan added that the company’s portfolio of real estate debt amounts to EGP 1.8bn, which provides revenue of about EGP 150m annually to the company.

The debt is distributed between lands with EGP 1bn and EGP 800m housing and old debts, which makes the company’s credit position strong. Therefore, the company tended to the notion of contracting with mortgage finance companies and some banks to sell part of its debts portfolio.

He added that HCHD intends to contract with Misr Bank, Al Ahly For Real Estate Development and Al-Taamir for Mortage Finance Co to sell its debt portfolio for around EGP 240m.

He added that the company agreed with Banque Misr to sell part of the portfolio of debts at EGP 120m and with Al-Ahly Mortgage Finance to buy a portfolio worth EGP 60m. The company also agreed with Al-Taamir to buy another portfolio at EGP 60m from the company’s debts, as well as two other buys with two other companies this month.

Liquidity from the debts sold will be used to close part of the account which is now at EGP 230m, especially after demands from the current shareholders in the company, and part of the dues of the New Urban Community Authority (NUCA), which are at EGP 811m, as well as implement the Heliopark utilities project.

As for the Granada City project, Hassan said that HCHD plans to put a tender offer for real estate development before the end of June in order to execute tourist projects, malls, and entertainment areas, as well as restorations of the historical buildings in coordination with the Ministry of Tourism, on a land area of 11,000 metres in New Heliopolis City.

Concerning projects constructed in New Heliopolis City, covering 233 acre, Hassan said:  “The company has completed eight buildings in a compound that consists of 46 buildings, and it is willing to sell them at an auction, with an expected sale value of EGP 40m.”

As for Al-Obour City project, which covers 93 acres, HCHD completed four buildings, from a total of 17 buildings, and will present them at an auction, with the sale value of almost EGP 20m before the end of next June. The unused area in the project is estimated by 71,000 metres.

The net revenues acquired by the HCHD during the first quarter of the current fiscal year reached EGP 89.3m, while net revenues during last year’s first quarter reached EGP 65.5m. Therefore, revenue increased by 36%.

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