Master Group has signed a contract to develop a tower covering an area of 3,800 sqm in the MU7 area of the New Administrative Capital (NAC). The new development will comprise of 16 floors, including commercial, hospitality, and administrative services. Its official launch will take place in 2021, according to Master Group CEO Mohamed Lashin.
Daily News Egypt sat down with Lashin to learn more about the company’s new project, and other future development plans.
What are the company’s projects in the pipeline?
In mid-September, Master Group launched its latest development City Oval. It will be constructed on a 12-metre high plateau, with EGP 6bn in investments. The project’s total area is 37 feddan, and will comprise residential units as well as a 13,000 sqm mall.
City Oval will also include a service area, entitled City Square, at the heart of the project. It will include restaurants and cafes, apart from the commercial mall.
City Oval consists of three different parts, each of which has a special nature: Bougainvillea contains 31 villas; Wisteria comprises 34 twin houses; and Azalea includes 1,021 apartments of varying sizes.
The company is also developing a EGP 4.5bn project, called The City, in the NAC’s R7 district. It is being developed on an area of 54 feddan and is comprised of about 2,187 residential units to be constructed over four phases. With the first phase set to be completed in 2021, the company has so far sold more than 65% of the project’s units. The entire project is scheduled to be delivered in 2023.
The City project has a built-up area of 20%, and the utilities area will not exceed 18%. Moreover, The City includes a 9,000 sqm commercial mall located in the heart of the project. The mall will include international brands to serve the compound’s residents. The mall will also comprise clinics, pharmacies, cafes, and restaurants, and a clubhouse.
In addition, Master Group is developing the Ibiza Chillout Sokhna project in Ain Sokhna, on an area of 28 feddan. It boasts a facade overlooking 300 sqm Red Sea beach. The project also has a 5-star hotel and 720 units.
The Ibiza Chillout Sokhna is being constructed over three phases, with investments worth EGP 1.2bn. The entire project is scheduled to be completed by the second half (H2) of 2022.
Last but not least, Master Group has signed a contract to develop a tower on an area of 3,800 sqm in MU7 area in the NAC. The new development will comprise 16 floors including commercial, hospitality, and administrative services. It is set for an official launch in 2021.
What is Master Group’s strategy for the coming period?
Master Group adopts a clear strategy based on credibility and commitment to meet its customers’ needs, and deliver its projects according to agreed schedules with clients. The company also develops its real estate projects in a way that integrates with the state’s vision for comprehensive urban development.
The company is currently studying potential projects in Upper Egypt, particularly Minya and Assiut governorates, as well as Ras Sudr city, which is considered one of the best locations in the Sinai Peninsula. The company aims to lead the Egyptian market during the next few years.
What is the size of Master Group’s land bank? And does the company intend to add new lands?
Master Group owns 120 feddan divided into 93 feddan in the NAC and 27 feddan in Ain Sokhna. The market value of the company’s lands exceeds EGP 3.5bn. We also aim to increase our land bank through an expansion plan over 2020 and 2021.
How much in investments has the company allocated to its projects during 2020?
We directed EGP 600m into construction works and instalment payment for new lands in 2020. The amount is divided as follows: EGP 200m in the Ain Sokhna project and EGP 400m in the NAC project.
In early October, you announced that Master Group expanded outside Egypt and established a new real estate company in the UK. Can you elaborate on the new company?
Master Group established a real estate investment company in England through an Egyptian-English partnership. This partnership came as a result of a strong desire from me and the English partner to transfer Egyptian expertise in the field of architecture to the English market, and attract foreign investors to our real estate projects in Egypt. It also comes in line with the state’s plan to support property export.
Additionally, Master Group, through its marketing arm Oxford Marketing, has been marketing Egyptian real estate in both Dubai and England for years, and has found growing demand for new projects in Egypt.
Accordingly, the company is currently studying with its English partner to buy two plots of land in England, to establish an integrated residential project. All the details will be announced soon.
The company will also promote its development projects and new cities that are being established currently in Egypt to attract new investments to the Egyptian market.
How has the COVID-19 crisis affected the local real estate sector, especially Master Group?
The novel coronavirus (COVID-19) crisis affected the Egyptian market in general, and the real estate sector was no exception. The company put an emergency plan in place to handle the pandemic’s repercussions on business. We focused on preserving employment and continuing construction as much as possible. We also presented payment plans to stimulate sales during the crisis. Despite this challenging situation, the company has achieved very satisfactory sales during this year.
Does Master Group finance its projects through bank loans?
Master Group projects are self-financed. We have no plans currently to borrow from banks.
What are your expectations for Egypt’s real estate market during the coming period?
The Egyptian market is completely different from the regional markets, as it enjoys a real and strong demand. What we need today is to focus on issuing a new law for real estate developer federation. There is growing optimism in the Egyptian real estate market, especially as ministries and government institutions are scheduled to move their headquarters to the NAC next year, besides the state’s continuous encouragement of urban expansion.