Egyptian Resorts Company (ERC) is finalising studies, designs, licenses, and approvals for new distinctive real estate projects which will cater for multiple client segments, one of which is planned for the fourth quarter (4Q) of 2019.
In parallel, to benefit from the ongoing growth in Egypt’s tourism industry, the company will move forward to develop new resorts over the coming five years. Several studies are currently underway on hospitality and resort management services to maximize potential revenues from this important sector.
The ERC aims to increase the value of its 3.4m sqm land bank. It will also allocate 100,000 sqm of land annually for hospitality sub-developers, while halting any residential-related land sales.
With the company’s average development cycle at 3-4 years, the ERC expects the sales of undelivered contracted units executed between 2017 and 2019 to begin to have a material impact on the company’s income statement by late-2020 and grow significantly over the next four years.
About real estate sales and reservations, the company’s Bay Village recorded contracted unit sales of EGP 203m, with an average selling price of EGP 20,500 per sqm, representing 55% of the project to date. Reservations amounted to EGP 33.6m. The company estimates that Bay Village will be completely delivered by 2023. With more than half of the development already sold before the second half (1H) of 2019.
Bay Condos is a 2,525 sqm mixed-use development project with a total built-up area of 4,200 sqm, located in the heart of the Old Town district, Sahl Hasheesh bay. Completion of this project is also expected by 2023.
Meanwhile, at Tawaya, the ERC’s strengthened effort alongside Palm Hills Development to market and sell the development’s upscale units resulted in EGP 295m in contracted unit sales, or 83% of the updated project’s targeted sales. At Jamaran, the ERC’s exclusive in-house offering of seaside villas along the Sahl Hasheesh coast, revenue from unit sales recorded EGP 14.4m in 1H 2019, up by 41% y-o-y from 1H 2018. The company expects the sale of its remaining villas to be completed by the end of 2019, with the average selling price for the seafront units at EGP 31,000 per sqm.