Complex Made Simple

Egypt’s SODIC signs $460 mln of sales contracts in first nine months

Egypt's third largest listed property developer is targeting sales of 4 billion pounds this year

By Ehab Farouk

CAIRO, Nov 16 (Reuters) – Egyptian real estate developer SODIC signed sales contracts worth 3.6 billion Egyptian pounds ($460 million) in the first nine months of 2015, its managing director said on Monday.

SODIC, or Sixth of October Development and Investment Company, targets upper middle income consumers and sells housing units starting at 600,000 pounds.

The company, Egypt’s third largest listed property developer, is targeting sales of 4 billion pounds this year, up from 3 billion in 2014. Demand for new housing remains strong and the sector has resilient despite political turmoil.

SODIC has invested 2.3 billion Egyptian pounds since the start of 2015 and its land bank has reached 3.5 million square metres, Managing Director Maged Sherif told a news conference.

He said the company was considering buying land on the coast of the Red Sea in the first quarter of 2016, as well as other land on the Mediterranean North Coast.

It started selling the first phase of its 100-feddan (42 hectare) North Coast project in the third quarter, he said. The project is set for completion in three years and contracts worth 560 million pounds have been signed for the first phase.

SODIC will start a new development project in the first half of 2016 on land it bought from the government, Sherif said. The company said in September it had won a government auction for a 30.76 feddan piece of land worth 221 million pounds.

($1 = 7.8300 Egyptian pounds)

(Writing by Ahmed Aboulenein; editing by David Clarke)