Egyptian developer Madinet Nasr for Housing & Development (MNHD) closed 2022 with a net profit of 747.4 million Egyptian pounds ($24 million) on total revenues of EGP 5.2 billion ($170 million), the company said in a press statement.

The statement said MNHD achieved record-breaking gross contracted sales of EGP 112.36 billion ($3.7 billion) for 2022, up by 224.4 percent y-o-y on the back of new project launches and significant increases in unit deliveries during the year. 

While inflationary pressures hindered consumer purchasing power, it benefitted MNHD as people turned to real estate market to safeguard their financial interests, company CEO Abdallah Sallam said in a note accompanying the 2022 results announcement.

In an interview with CNBC Arabia on Sunday, he noted that persisting high inflation increased real estate prices by 30 to 50 percent, adding that MNHD is hedging against the risk of another devaluation of the pound through specially constituted committees focussing on pricing decisions, innovative ways to sell products and diversifying into different markets.

The company’s fractional ownership proposition, launched for the first time in Egypt, had pulled in sales of about EGP 100 million ($3.3 million), he told the business news channel. Last year, MNHD had launched fractional property ownership for The Hoft in Taj City, a hybrid property that includes serviced apartments, administrative offices, co-working spaces and a commercial plaza.

In his note, Sallam had noted that as part of its expansion and revenue diversification plans, the company is entering commercial real estate market with Kinda Offices at Taj City and is looking to expand beyond Greater Cairo, the location of company’s primary land bank within Taj City and Sarai developments.

He told CNBC Arabia that MNHD has a project in Assuit poised for launch in 2023. The project, spanning nearly half a million square metres, is expected to achieve sales of EGP1 billion ($33 million) in the first phase.

On the delivery front, MNHD’s hand overs in 2022 increased 101 percent year-on-year to more than 2,070 residential units across all its developments from 1,030 deliveries recorded in 2021.

Deliveries for the year were led by Sarai and boosted by sales of ready-to-move inventory. MNHD completed 1,488 handovers at Sarai, up from 343 in 2021, and 558 handovers at Taj City, up from 542 handovers from the previous year. Meanwhile, the Company booked 24 handovers at Nasr Gardens, a subsidised housing project, down from 145 in 2021.

MNHD deployed construction and infrastructure CAPEX of EGP 1.8 billion ($59 million) during 2022 compared to EGP 2.4 billion ($78 million) in 2021. The lower CAPEX as attributed to MNHD’s completion and delivery of several construction projects at the TAVAL and Croons developments in Sarai and at Park Residence in Taj City.

In June 2022, MNHD began construction at Shalya and Lake Park projects within Taj City with construction contracts awarded to local firms El Hazek Construction and DMC respectively.

MNHD held a land bank measuring 9.6 million square metres at the close of 2022.

(1 US Dollar = 30.68 Egyptian Pounds)

(Writing by Eman Hamed; Editing by Anoop Menon)

(anoop.menon@lseg.com)