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MBG intends to direct EGP 10bn investments to New Administrative Capital - Daily News Egypt

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MBG intends to direct EGP 10bn investments to New Administrative Capital

Company aims to complete marketing of Pukka project’s first phase in 2018

The total investment of MBG in the Egyptian real estate market is approximately EGP 20bn, according to Mahmoud Al Adl, chairperson of the company.

Al Adl told Daily News Egypt that the company intends to invest more than EGP 10bn in the New Administrative Capital through the establishment of two integrated projects on a total area of 100 feddans, in addition to the implementation of a medical project for athletes’ injuries in the sports city on an area of 10 feddans.

Al Adl added that the company has begun its first project, in the New Administrative Capital, Pukka, which will be built on 50 feddans, comprising 50 buildings with about 1,500 units, ranging from 112 sqm to 230 sqm with a 22.5% of the project’s total area constructed.

He revealed that the company’s plan includes expansion in the “giant national project” the New Administrative Capital, where the company is preparing to begin its Capital View project on an area of 42 feddans over the next two months.

Moreover, the company aims at obtaining 10 feddans within the medical city in the New Administrative Capital to establish a rehabilitation centre for disabled people, as well as for physical therapy and treatment of stadium injuries, besides clinics for sports medicine.

“The company began earthworks on the site to start construction of the first phase of Pukka, which will be developed in four phases over four years, with investments estimated at EGP 4bn,” Al Adl noted. “The company has launched the first phase for reservation, which includes 350 residential units that are targeted to be marketed within three months with expected sales proceeds of EGP 1bn. The company offers a 10% down payment and a seven-year installment period.”

He pointed out that the company obtained the ministerial approval and paid 20% of the land’s value in accordance with the contract with the Administrative Capital for Urban Development (ACUD).

He explained that the company allocated 11% of the project’s total area to establish service activities including a commercial mall on an area of 60,000 sqm. In addition, it will include administrative units and a specialised medical centre to serve the area surrounding the project, which is located in front of the cathedral in the capital.

He explained that MBG is dependent on self-financing by injecting liquidity from its shareholders as well as sales proceeds, noting that bank borrowing is not in the company’s plans in the current period.

He elaborated that the project’s solvency is separate from the rest of the company’s projects, meaning all of Pukka’s sales proceeds will be directed to its construction.

The company has developed several residential and touristic resorts in the cities of Damietta, Mansoura, and Ras El Bar.

In Ras El Bar, the company has three villages: Sunset Festival, Sunset El Nakheel, and Sunset Gardens. In Mansoura, MBG has Al Oula City on an area of 27,000 sqm and World Trade Centre on an area of 20,000sqm, in addition to the International Medical Centre on an area of 10,000 sqm, consisting of specialised medical centres on the Nile.

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