Daily News Egypt sat down for an interview with Shalaby, who said that the company plans to develop a project in the expansion of Sheikh Zayed city and awaits the launch of the New Urban Communities Authority (NUCA). The transcript for which is below, lightly edited for clarity:
Can you mention your company’s targeted sales value in addition to its achieved sales?
The company has achieved approximately EGP 4. 5bn in sales since January and seeks to achieve another EGP 3.5bn by the end of December to complete its target for this year. In addition, Tatweer Misr aims to achieve EGP 8bn in sales this year compared to EGP 4.5bn last year, which included units in two projects in IL Monte Galala, Ain Sokhna, and Fouka Bay in North Coast, and joining them this year the Bloom fields project in El Mostakbal city.
Will your company offer new phases in certain projects?
The company is preparing a range of proposals for various units within its three projects to ensure that it achieves its sales target. It includes offering cottages and cabins in the Fouka Bay project, which will include about 40 cottages and 80 cabins overlooking industrial lakes with turquoise water.
Furthermore, the company targets completing sales of 208 hotel serviced apartments, of which 80% have been sold.
Fouka Bay is on 1m sqm in the North Coast. The first phase of the project will be delivered by the end of this year and is being developed on four phases with investments estimated at EGP 5bn, including hotel serviced units.
Moreover, hotel activities which will be developed in the IL Monte Galala project will include part of the hotel serviced apartments and villas.
IL Monte Galala is being built on an area of 2.2sqm in Ain Sokhna and will be developed over a period of 10 years ending in 2027. It includes villas, chalets, in addition to a range of other services and hotels with investments of EGP 16bn.
What updates do you have concerning your newly launched project in El Mostakbal city?
The company has marketed about 1,000 units of the Bloomfields project in El Mostakbal city, since it was offered for sale in the beginning of the year and it is preparing to launch a new phase of villas within days.
The company has already received the ministerial decision and is in process to obtain building licensing.
In December 2017, the company has signed a partnership agreement with El Mostakbal for Urban Development. The partnership agreement comprises of the allocation of an area of 325 feddans for the development of a mixed use residential development, to be completed within 10 years with a total estimated investment of EGP 28bn.
Tatweer Misr also signed a purchase agreement, with El Mostakbal, for a plot size of 90 feddans for the establishment of a university and international schools in El Mostakbal city with a total investment of EGP 5bn to be completed within eight years.
The company is in negotiations with several American and British universities to obtain a variety of educational programmes, including entrepreneurship curriculums to ensure compatibility with the needs of the labour market and the capabilities of graduates.
Company recently announced launching seven hotel projects, can you elaborate on your funding source?
Currently, the company is preparing a financial study for seven hotel projects to be developed in our two projects IL Monte Galala and Fouka Bay to determine their financial system, which will be mixed between injecting liquidity from the company’s capital and current shareholders and one of the other financial alternatives, whether involving partners or using private funds. Alternatively, access to banking facilities that will welcome the development of hotels.
In late August, Tatweer Misr signed a memorandum of understandings (MoU) with international hotel operator Kerten Hospitality to develop
boutique hotels in its projects. One of these is the boutique hotel and serviced apartment concept. The second is Kerten’s first brand catering to the next-generation, connected traveller, Cloud7 Hotel and Residence.
The number of projects in the pipeline include seven hotels in total, which will be located in projects IL Monte Galala and Fouka Bay. The former will host three hotels (Cloud7 hotel and serviced apartments, a Cloud7 hotel, and the house branded villas, serviced apartments, and hotel) spread across 1, 340 keys and a total built-up area of 108,000 sqm, with a total investments of EGP 2. 5bn. While Fouka Bay will feature four properties (two house hotels and serviced apartments, Cloud7 hotel, serviced cabanas and bungalows,
and a Cloud7 hotel), offering more than 1, 000 keys covering around 100, 000 sqm with total investments of EGP 2bn.
The first hotel opening is the House Hotel Fouka, which is scheduled to start its soft opening in 2020 in the North Coast development.
Can you tell us about your company’s expansion plan?
The expansion plan of the company will ensure the development of between 400 and 500 feddans in Sheikh Zayed city, in order to become similar to the Bloomfields project, which includes a university as the project centre, along with several activities and residential units.
The company is looking forward to the new proposal of the NUCA
and prefers to obtain land under a partnership system, especially, that the company is seeking a large plot of land and requires huge investments.
Additionally, we were looking for new land in the North Coast, due to the close date of completion of the Fouka Bay project, as well as taking advantage of the customer base and experience gained in that area.
Besides, the company is interested in the New El Alamein city and the New Administrative Capital and looks forward to the opportunities available in these areas to launch new mixed- use projects.
What value of investments did you allocate to construction works in this current year?
The company has allocate EGP 2.4bn in the construction of IL Monte Galala and Fouka Bay projects since the beginning of the year, representing 60% of our target for the current year. I expect that value will increase to reach EGP 3bn by the end of the year.
The current work in IL Monte Galala project includes earthworks, roads, amenities, and lakes with a total value of EGP 450m. Also, 6m cubic metres of drilling and piling works were completed. Furthermore, we implemented lakes with a total value of EGP100m. The first lake is expected to be completed by the end of 2019.
The company completed 2.5m cubic metres of drilling and piling with a total value of EGP 200m in the Fouka Bay project.
In addition, 75% of the project’s terraces have been constructed, 45 villas and 34 twin houses have been built, and we have developed 105 chalets in the first phase of the project. Finishing works are being completed.
Likewise, the company is implementing 45 swimming pools and is constructing 966 units with total investments worth EGP 1.5bn and we will begin working on implementing lakes in 2019 worth a total of EGP 250m.
Plus, utilities and services will be completed by the end of 2018. Bids for the developing landscape works are being processed, as well and 1,500 units of the project are sold out.
Any expectations for real estate prices by year’s end?
The increase in project prices is linked to the cost, so companies coordinate with contractors to pay for differences in prices and increases in raw materials and some elements may increase by 10% or 15%. However, the overall rate of increase is between 3% and 4% and the real challenge is that the purchasing power of some community segments has decreased, which needs the activation of the mortgage system and the facilitation of conditions to be on par with customers.