The cost of carrying out Ziznia El Mostakbal project has increased from EGP 1.2bn to EGP 3bn after the pound flotation, according to Ashraf Dowidar, CEO of ARDIC for Real Estate and Development.
Dowidar told Daily News Egypt that EGP 1bn has been pumped so far in the project and that a new EGP 1bn will be injected into construction works of the project next year. The remaining value will be directed to carrying out landscape works and final finishes in 2019.
Ziznia El Mostakbal project is located on an area of 70 feddans received by the company in a bid for the El Mostakbal for Urban Development Company.
The building area of the project represents 20%. The project includes 1,807 units with areas ranging from 140 sqm to 400 sqm, with a four-year implementation period. The first phase will be delivered in September 2020.
He pointed out that the company completed marketing about 50% of the total project’s units, noting that the company has developed 20% of the project.
Dowidar explained that the company intends to implement two models of residential buildings and the completion of two units initially to emphasise the quality of the project and attract a larger segment of customers.
Dowidar added that the high implementation rates contribute to increase the marketing rates of the project.
“The company marketed about 30% of the project before the flotation. Therefore, companies have provided a lot of facilities in payment to encourage the customer to purchase, although these facilities are considered a financial burden on the developer alone, and disrupt his expansion plans in the market,” Dowidar said.
He announced that his company is negotiating with El Mostakbal for Urban Development to develop another 300 feddans in El Mostakbal City through the partnership system, noting that the nature of the project will not be determined, whether residential or administrative.
He also revealed that the company is currently negotiating to acquire 300 feddans in the New Minya City in order to diversify its investment portfolio in terms of areas of projects’ implementation, especially with the presence of distinct purchasing power in Upper Egypt.
Regarding the company’s launch of new phases within the Ziznia El Mostakbal, Dowidar said that 80% of the “The Curve” phase of the project has been marketed.
A new phase of the project was launched under the name “The Breeze El Dima Residence”, with a total area of 245 sqm to 255 sqm at “This is Egypt” exhibition in the United Arab Emirates in March, as part of the company’s plan to market the project internally and externally, according to Dowidar.