Brickzey Property Management, a sister company of Cairo Capital Development Company, aims to achieve sales of EGP 4bn in the current year.
The company will launch a residential project next to the Grand Egyptian Museum in April with EGP 1.5bn worth of investments and is considering the establishment of a hotel management company.
Daily News Egypt sat down with Ahmed Selim, chairperson and CEO of Brickzey Property Management company and Cairo Capital Development Company, to talk about the company’s expansion plans and current projects.
What are the activities of the company?
The group has two companies, the first is the managing and marketing company established four years ago and the second is a real estate development company.
We established Cairo Capital Development Company for real estate development and started the company’s activities by launching Primavera project, launched last month.
The total units we are developing in our projects are 3,000 units in Hadayek October area.
Primavera is a middle-income residential complex located in Hadayek October close to the Sun Capital project and consists of 200 units. We marketed about 50% of the project, and we started its construction last month prior to bookings.
The project will be delivered within one year although our contracts with clients are due in two years. But we insist on delivering the project earlier.
Currently, the company assigned contractors to develop Primavera 2, Primavera 3, and Primavera 4, with an average of 200-300 units for every projects, and areas between 90 sqm and 180 sqm per unit.
We will launch Primavera 2 in April after completing the sales of Primavera 1.
What is the targeted sales value of the project?
We target achieving EGP 150m.
What are other projects the company is developing?
In April, we will launch the Infinity project for booking. The project consists of luxury hotel apartments which are fully furnished and close to the Grand Egyptian Museum. The areas of units range between 90 sqm and 300 sqm.
The project is being developed over three phases, each including 100 units. We contracted with a British consulting office to design the project and we have started the construction works of the project.
What is the value of targeted sales of the project?
The targeted sales are estimated at approximately EGP 1.5bn.
What is the company’s expansion plans?
We are in negotiations to acquire plots of land in several areas, such as the New Administrative Capital, Ain Sokhna, and the Green Belt in Sixth October city.
In the New Administrative Capital, we are seeking—with other investors— to acquire a plot of land on an area of 30 feddans to establish chalets and a hotel. We are also negotiating the purchase of 20 feddans in the Green Belt area to establish a villas project with only a 25% construction area, and the remaining area dedicated to green spaces.
When will the allocation of land for the company in the New Administrative Capital be approved?
I expect the allocation to be during the next month. I also expect completing the design and the master plan of the project within three months. We will launch the project for sale before the year’s end.
What is the value of sales targeted from the company’s projects in the capital and in Ain Sokhna?
We target EGP 5bn in sales. Meanwhile, the sales of Ain Sokhna project are estimated at EGP 2bn.
Does the company have plans for commercial projects?
We do not have plans to establish commercial projects so far.
What is the value of investments in the current year?
Investments reach roughly EGP 2bn.
What are the total sales targeted in the current year?
We target achieving EGP 3bn.
Does the company plan to invest in New Alamein city?
New Alamein represents a qualitative leap in the strategy of development projects in the North Coast, exploiting the land in an integrated way instead of the resorts spread along the coast, which are being visited only two months a year, despite the huge amounts spent on the facilities by the state as well as the investments pumped by the developers.
The company is looking forward to land offerings in New Alamein to apply for it in its future plans. A huge demand is expected by real estate developers to launch investments in the city.
Regarding the Brickzey Property Management, what is the value of achieved sales for developers?
The company achieved EGP 700m sales for other developers.
What are the projects that you marketed exclusively?
We have marketed a middle-income housing project on 19 feddans in the northern expansions of Sixth October city. Another residential project in Hadayek October consists of 300 units.
We further target marketing another project exclusively in the New Administrative Capital on 37 feddans. In addition, we target marketing a project in Ain Sokhna on 40 feddans.
Next month, we will market Arabiano, which includes 1,000 units for middle-income housing in Hadayek October for Arabian Group for Development. We expect to complete its marketing within five months due to the great demand on the project.
Nevertheless, we are one of top brokers for marketing Sun Capital on behalf of Arabia Holding and Etapa project for City Edge Developments.
What are the targeted sales of Brickzey Property Management?
I expect EGP 4bn, including the sales of Cairo Capital Development company.
Will the company participate in the Cityscape Egypt exhibition in March?
We are negotiating with Cityscape to reserve a booth with an area of 500 sqm for our company to market our projects. If we reach an agreement, the company will launch the Infinity project. The project is representing a new concept for rented luxury hotel apartments.
Do you think real estate exports will increase in the current year after the new offerings in east and west Cairo?
With the unstable situation in the Arab Gulf area, the demand is high on purchasing real estate villas and units in Egypt, especially in Sheikh Zayed and the New Administrative Capital. Further, after the development of Il Galala and New Alamein cities, real estate exports will reach their highest rates, which may reach 100% to 200%.
The political stability in Egypt will attract more Arabs to buy more property in the country. Besides, the devaluation of our local currency will encourage more foreigners and Egyptian expats to acquire property.
After the expiration of high-interest rate certificates in the current month, what are your expectations for the ratio of money to be injected in the sector?
I project that about 30% or 40% of the money flows, after the expiration of the high-interest rate certificates, will be directed to the real estate market.
What are your expectations for price hikes by the end of this year?
Prices are expected to increase by 30% this year due to the foreseen increase in demand, in the next period, from customers to buy, especially for the purpose of high profitability investment. Besides, investing in real estate is a safe investment especially for companies that are credible and have no delays in delivery.
What is your opinion on the partnership between the government and private real estate companies?
The partnership projects have received great demand from customers and achieved marketing success with the presence of the state as a partner in the project, which represents a guarantee for customers. In addition, the partnership system is compatible with the needs of companies as it provides the value of the land and directs the available liquidity for the implementation process to speed up the turnover of capital.