SODIC Plans EGP 2.4bln New Investments in 2015 – Official

By Yomna Yasser On Oct 19, 2014

Egypt’s property developer, SODIC is planning to invest nearly EGP 2.4 billion ($335.6 million) during 2015, said Managing Director Ahmed Badrawi.
The company may inject more investments in new land plots along the Egyptian coasts or in other areas, the official added.
The Egypt-based property developer – Sixth of October Development & Investment Co. (SODIC) is planning to kick off constructions and launch phase one in the land plots it won this year over an area of 1.3 million sqm in New Cairo before 2014-end. It targets EGP 300-600 million sales in such a phase and around EGP 9 billion from the overall project.
During Reuters Middle East Investment Summit, Badrawi said his company is targeting overall investments of up to EGP 2.5 billion by the end of this year, in addition to receiving the land area of commercial project in Mansourah.
Egypt’s property sector is growing strongly. There has been a severe shortage in real estate and thus demand is higher than supply, said the official.
Badrawi said it is the right time to expand strongly in the Egyptian market, adding that that is why his company bought new land plots and increased its capital.
SODIC will complete next Thursday a rights issue to raise capital by nearly EGP 1 bilion to EGP 1.363 billion.
Two thirds of the capital hike will go for investment in New Cairo new project, while the other third will go for investments in new land plots.
SODIC owns a land bank of nearly 11 million sqm, including 3.6 million unutilized land areas. Asked whether SODIC would turn profitable this year after logging losses in 2013, the official replied that H2 figures would be similar to those of H1. He expected huge figures starting next year.
H1 financial results had mirrored a jump in net profit by 84% to EGP 90.5 million, compared with EGP 49.1 million in the same period a year earlier.
SODIC had logged EGP 447.13 million losses in 2013, pressured by scrapping Syria investments and cancelling contracts.
Badrawi indicated that sales reached EGP 2.2 billion year-to-date, adding that they may rise to EGP 2.7 billion by 2014-end.