The Six of October Development and Investment Company (SODIC) is looking to grow its recurring revenue to EGP 600m annually by 2023, covering commercial, administrative, and medical units, according to Managing Director Magued Sherif.
Sherif added that the company aims to record EGP 8.8bn in sales in 2021, reflecting a growth rate of 19% compared to 2020 sales.
Regarding the growth of SODIC’s land bank, he said that the company aims to contract new lands along Egypt’s North Coast covering areas of 150-200 feddans.
He also noted that negotiations with the New Urban Communities Authority (NUCA) have reached the advanced stages on reconciling the land conditions of the 300 feddan Malaz project. The project is expected to be launched during the current year.
“SODIC always receives offers with land and investment opportunities, in several regions, but it does not currently think of going to towers, but rather based its vision on establishing occasional projects,” Sherif said, “However, the company is looking at investment opportunities on the North Coast, where it sees these as an extension of its projects in Cairo, and with the limited lands there, the company will not hesitate to seize the good opportunities.”
SODIC was included in the list of companies competing for the development of the Heliopark project, owned by Heliopolis Company for Housing and Development (HHD). Sherif stressed that the project represents an excellent investment opportunity due to its location near the New Administrative Capital (NAC).
In 2016, HHD and SODIC signed a partnership contract to develop 655 feddans in New Heliopolis, with an expected total sales of EGP 44bn, and an investment value amounting to EGP 17bn.
Regarding the deal with the real estate firm Aldar Properties, Sherif explained that the UAE company has submitted a non-binding offer to acquire at least 51% of SODIC’S shares.
He added that the deal, if completed, represents a great addition for the two companies.
He further disclosed that the UAE company has a desire to enter the Egyptian market, due to the solidity of the local real estate market and its ability to overcome any crises.
Sharif expected that the deal will be settled in mid-June, adding that the company has reached a final offer with a foreign investment bank. A contract will be completed within days as a foreign financial advisor for the deal alongside EFG Hermes.
The appointment of a foreign financial advisor for the deal was due to the foreign ownership of about 70% of SODIC’s capital.