The construction phase of the Blue Pearl project in Marsa Matrouh will begin within 60 days, according to Themar for Real Estate chairperson Maged Abdel Fadeel.
Daily News Egypt spoke to Abdel Fadeel about the company’s business and projects’ delivery.
What projects has the company implemented so far this year? What is your plan for the level of offering and delivery?
Themar for Real Estate engaged in the construction phase of the Blue Pearl Townhouse project in Sidi Abdel Rahman on the North Coast. The company has completed 70% of its construction and the initial delivery will be at the end of this year.
The company is putting forward a new project in El-Alamein city this summer named Blue Pearl El-Alamein, which will be located in the heart of the city in Matrouh governorate which is a global tourist area.
The company has also implemented and fully concluded the commercial phase of the project. We began work on the project’s residential units. The project has not yet been launched for sales. The selling and marketing phase will start within two weeks. We aim for a hand over within 12 months, as the company carried out 40% of the project’s construction.
The project is on an area of 5 acres and consists of 200 units. The average price of a unit is EGP 300,000 and the price per square metre ranges between EGP 3,500 and EGP 6,000. The company is targeting sales of 150 units. It consists of two phases, the first will be delivered after a year and the second phase will be completed after three years. We target 30% sales of the project after offering the first phase.
Blue Pearl project in Marsa Matrouh is the third project the company is working on. Its construction phase will begin within 60 days.
The company targets sales of 120 units in the first phase and I expect that demand will be much higher than the Blue Pearl Townhouse project in North Coast.
The Montazah Elegance compound project occupies an area of 4,200 sqm in Montazah, Alexandria near the Sheraton Montazah and the Corniche. The project features a number of connected towers, each with 11 floors and includes 180 housing units.
The housing units range in size between 160-170 sqm, while commercial complexes are 3,000 sqm in size. The project has been completed and the units are ready for purchase and we expect 60% sales.
Is the company planning any partnerships?
Yes, the company receives offers from Egyptian and Gulf investors to form partnerships and develop projects. The company is studying these offers; we would prefer partnerships for the development of projects in advanced construction phases as this phase is the most suitable for the market right now amid high demand for ready-made projects, which are considered the safest for customers.
The company entered into a partnership with the Egyptian Emirates Group to develop a project for the largest medical centre in Mohandiseen. The centre consists of 60 clinics for all medical specialisations. A foreign company will manage the entire medical centre and our company will market and operate the clinics. Clinic’s price is about EGP 400,000 and the average instalment is for up to 4 years. Construction has begun and the project will be put up for sale after Ramadan. The project will be launched within the year.
What is the size of the company’s land bank?
The company’s total land bank is 25 acres. The company is legalising the status of two plots of land in Marsa Matrouh. We have another plot of land in the North Coast and another in Mohandiseen which has not been used and accounts for 14 acres.
What are the company’s expected revenues this year?
I expect no less than 25% in revenues.
Does the company plan to expand into new places in the coming period?
The company’s target is carrying out and constructing its ongoing projects rather than selling units or expanding.
Does the company intend to enter into a partnership with the Ministry of Housing?
If the ministry offers land at a suitable price then we will participate. The government has been involved in partnerships with large developers in the real estate market. For example, the partnership between Mountain View, Saudi Sisban Holding and the Housing Ministry proved successful from the very first day when housing units were put up at a price of EGP 8,000 per square metre in Fifth Settlement. This price is considered very low for the area, as the price per square metre in compounds there can range from EGP 10,000 to EGP 20,000.
If the Housing Ministry launched social housing projects for low-income earners, would you be involved in these projects?
Of course we would take part, but with some facilities besides the price of land, such as facilitating procedures and ensuring the land is licensed.
What do you think about the recent tender put forward by the New Urban Communities Authority (NUCA) with very high prices for land?
The Egyptian real estate market is currently unstable. High land prices and rising costs of construction materials have stagnated over the past four months alongside evidence that deposits in banks increased by 50% in the last six months of 2015.
Four or five big companies are benefiting from the tender through partnerships or certain blocks. These companies are significantly working in real estate projects in the coming period.
What obstacles hinder the sector?
The most important constraints are high land prices, increases in the cost of raw material, and slow procedures for obtaining licences.