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(Updating to add the company's Q1 results released on Sunday)
Egypt’s Misr Al-Gadida for Housing and Development, listed on the stock exchange (EGX), is expected to sign a new agreement to develop 491 acres this month, a top company executive said.
The company’s CEO, Sameh Al-Sayed, told Zawya Arabic in an interview that the deal is the latest and fourth one in a series of similar agreements recently signed with Egyptian developers.
“These (four) agreements would bring on average an annual revenue of around 7.5 billion Egyptian Pounds ($159 million) in the coming 14 years besides the sales revenue as per sales partnership agreements (signed with the developers), which could potentially raise our total revenue to around EGP10 billion ($212 million) a year,” Al-Sayed said.
The fourth deal will be signed with Egypt’s Madinet Masr for Housing and Development that is also listed on the EGX.
The four deals’ projects are expected to commence in the first quarter of 2025, according to the CEO.
Misr Al-Gadida, with a history exceeding 118 years, is majority-owned (72.25 percent) by the Egyptian government through the Holding Company for Construction and Development.
Earnings forecasts
Misr Al-Gadida's financial performance has seen a strong upward trend thanks to land sales and strategic partnerships.
The company’s first quarter 2024 net profit increased to 748.5 million pounds ($15.8 million) compared to EGP19.4 million in the same period last year, the results released on Sunday showed.
Al-Sayed had told Zawya Arabic last week that the company expects its first-quarter 2024 net profit to skyrocket by more than 30-fold to around EGP 680 million ($14.4 million) compared to the same period last year.
For the year 2023, the company scored a net profit of EGP 7.8 billion, compared to EGP 603 million in 2022. Revenues also witnessed substantial growth, reaching EGP 15.6 billion in 2023, up from EGP 2 billion a year before.
Misr Al-Gadida will be left with about 700 acres of land out of its 5,000-acre land bank after the implementation of the new development agreements.
Looking ahead, the company is in the process of selecting a consultant to develop a 26-acre residential project area in New Heliopolis, a part of Heliopolis city, which is the commercial name of the Misr Al-Gadida area that the company manages.
The selection is expected to be finalised within a month, paving the way for contractor bids and a determination of the investment cost within three months.
The company also has infrastructure investments in its sights, targeting an estimated EGP1 billion over 2024 and 2025, funded by partnership revenue flows.
Furthermore, Misr Al-Gadida is actively pursuing the acquisition of new land outside Heliopolis, aiming for an area of approximately 600 acres from the New Urban Communities Authority (NUCA).
The land will be developed independently, through partnerships, or a combination of both approaches.
"We are poised to move to new territories and open up fresh avenues for growth," Al-Sayed said, mentioning Sixth of October and Capital Gardens as potential areas of expansion.
(1 US Dollar = 47.17 Egyptian Pounds)
(Reporting by Shaimaa Hefzy; Editing by Anoop Menon; Additional editing by Yasmine Saleh)
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