Tameer de­vel­op­ing Azad, Dyar projects with in­vest­ments worth EGP 2bn: man­ag­ing di­rec­tor

The Daily News Egypt - - Business -


Tameer En­gi­neer­ing Con­sul­tants is de­vel­op­ing two res­i­den­tial projects in the cities of New Cairo and Sixth of Oc­to­ber, with in­vest­ments worth EGP 2bn. The com­pany has adopted a re­struc­tur­ing plan to achieve its ex­pan­sion tar­get and is cur­rently study­ing a num­ber of in­vest­ment op­por­tu­ni­ties.

Man­ag­ing Di­rec­tor An­toine El Khoury said that the com­pany is de­vel­op­ing Azad project in New Cairo next to the Amer­i­can Univer­sity in Cairo (AUC) on an area of 19 fed­dans, which in­cludes 500 res­i­den­tial units.The project is be­ing im­ple­mented in one phase but is be­ing mar­keted over four.

The com­pany ob­tained build­ing per­mits for about 90% of its build­ings and awarded con­tracts for im­ple­men­ta­tion.The con­struc­tions be­gan in the last quarter of 2017, leav­ing four build­ings that the com­pany sub­mit­ted its doc­u­men­ta­tion for and is ex­pected to re­ceive li­censes and ap­provals soon to be com­pleted by the end of 2019 with in­vest­ments of EGP 1bn.

He pointed out that the com­pany has mar­keted the first phase of the project, which ac­counts for 25% of its units, and is pre­par­ing to of­fer the sec­ond phase of 120 units, ex­pect­ing them to be sold this year.

He added that the project in­cludes a com­mer­cial ad­min­is­tra­tive build­ing on an area of 3,800 sqm as well as a recre­ation club and a so­cial build­ing.The com­pany has yet to be­gin study­ing the ex­ploita­tion of non-res­i­den­tial ar­eas in the project.

El Khoury added that Dyar project is be­ing im­ple­mented by the com­pany on an area of 43 fed­dans in Sixth of Oc­to­ber,which in­cludes 830 units,in ad­di­tion to a com­mer­cial ad­min­is­tra­tive build­ing. The project is be­ing im­ple­mented in four phases.The com­pany has al­ready mar­keted the first two.

He pointed out that the com­pany has mar­keted 35% of the project’s to­tal units and de­liv­ered the first phase’s units, while the sec­ond phase units are be­ing de­liv­ered now.

He said that the com­pany will be­gin the third phase of the project dur­ing the third quarter of this year in con­junc­tion with the start of con­struc­tion, ex­pect­ing it to be com­pleted by 2020 with in­vest­ments reach­ing EGP 1bn.

The com­pany has com­pleted the de­signs of the com­mer­cial ad­min­is­tra­tive build­ing within the Dyar project. The mar­ket­ing sys­tem re­quired a mar­ket study be­fore launch.

El Khoury said that the com­pany is study­ing a num­ber of projects and avail­able op­por­tu­ni­ties to choose what best fits its plans.The com­pany buys land di­rectly from the Min­istry of Hous­ing or in part­ner­ship with other de­vel­op­ers.

The com­pany achieved net sales of EGP 250m, com­pared to EGP 77m last year, as the num­ber of de­liv­ered units dou­bled in Dyar from 99 to 195 units in 2017, where sales scored EGP 453m last year.

The com­pany in­jected EGP 108m in con­struc­tion works of Dyar and raised its net profit to EGP 80m last year,com­pared to EGP 41m in 2016.

The com­pany has al­ready de­vel­oped the Dyar 1 project in the Sixth of Oc­to­ber and de­liv­ered units to clients.

El Khoury said that de­vel­op­ment of tourism projects does not in­ter­est the com­pany in the short and medium terms, hint­ing that it could con­sider them at a later stage, as the com­pany fo­cuses on the res­i­den­tial sec­tor to re­tain its clients.

The com­pany was launched in 1954 as a state-owned com­pany to im­ple­ment all works re­lated to de­sign, plan­ning, re­search, and im­ple­men­ta­tion of ur­ban projects with the aim of de­vel­op­ing na­tional projects to serve the com­mu­nity.

The name of the com­pany was changed toTameer in 1997.The com­pany is known for its cred­i­bil­ity to­wards its cus­tomers de­spite the many chal­lenges that it faced.

Among its most prom­i­nent projects are projects in New Maadi, as well as con­sul­tancy work for the es­tab­lish­ment of Hel­wan Univer­sity un­til it was listed on the Egyp­tian Ex­change (EGX),which ex­panded its client base.

El Khoury said that the com­pany is rein­tro­duc­ing it­self to match the vari­ables of the mar­ket based on the ex­per­tise of the com­pany and its cred­i­bil­ity and em­ploys its ex­perts to max­imise ben­e­fit and at­tract new ex­perts that have mod­ern mar­ket­ing ideas.

He said that the new pol­icy of the com­pany in­cludes sup­port­ing its sales team and im­prov­ing the com­pany’s po­si­tion in the mar­ket, as its brand­ing and web­site were up­dated and ad­ver­tis­ing cam­paigns were launched to sup­port project sales, hu­man re­sources de­vel­op­ment, and in­for­ma­tion sys­tems.

He pointed out that the mar­ket is go­ing through large vari­ables that re­quire com­pat­i­bil­ity with sales lev­els, es­pe­cially that the com­pany aims for growth in projects and seg­ments that it tar­gets and there­fore will have to present it­self to new cus­tomers in ad­di­tion to its cur­rent base.

He added that the com­pany aims to strengthen its fi­nan­cial ca­pa­bil­i­ties through fi­nanc­ing al­ter­na­tives un­der study, whether fi­nan­cial leas­ing or bor­row­ing, which will be fun­nelled to new in­vest­ments, since the com­pany has no debts and owns a good set of real es­tate as­sets.

He pointed out that the New Ad­min­is­tra­tive Cap­i­tal project rep­re­sents a fer­tile area for in­vest­ment and a ma­jor player on the map of at­trac­tive cities in the com­ing pe­riod,not­ing that the com­pany is study­ing the project but has yet to take se­ri­ous steps to enter it.

He pointed out that the rise in real es­tate prices since the lib­er­al­i­sa­tion of the ex­change rate and rais­ing the in­ter­est rate on mort­gage fi­nance has caused great pres­sure on com­pa­nies be­cause of the ex­ten­sion of pay­ment pe­ri­ods and di­rect­ing liq­uid­ity to fi­nance cus­tomers in­stead of re­ceiv­ing them in short pe­ri­ods and pump­ing them into new in­vest­ments.

He added that the part­ner­ship projects be­tween the Min­istry of Hous­ing and de­vel­op­ers rep­re­sent one of the typ­i­cal so­lu­tions to the pres­sures faced by the com­pa­nies af­ter the ris­ing costs of con­struc­tion and rais­ing the prices of real es­tate, which ex­ceeded the pur­chas­ing ca­pac­ity of cus­tomers cou­pled with the is­suance of high-yield cer­tifi­cates, which at­tracted a per­cent­age of cus­tomers.

He said com­pa­nies are seek­ing to ex­pand over­seas mar­ket­ing to ex­ploit the ad­van­tage added by the de­val­u­a­tion of the pound abroad as well as to com­pen­sate for the de­cline in the pur­chas­ing power of lo­cal cus­tomers and to seek al­ter­na­tives to raise the ca­pa­bil­i­ties of cus­tomers by pro­vid­ing less ex­pen­sive real es­tate fi­nanc­ing sys­tems and cre­at­ing fi­nanc­ing sources.

El Khoury ex­pected prices to rise slightly again this year to cope with in­fla­tion, pro­ject­ing a 15% in­crease in the case that the mar­ket suf­fers ma­jor changes that re­flect on the cost of con­struc­tion.

He pointed out that the eco­nomic mea­sures taken by the gov­ern­ment were coura­geous and had a sharp im­pact in the short term, but they were nec­es­sary to cor­rect the econ­omy and the mar­ket ab­sorbed its ef­fects.

Tameer En­gi­neer­ing Con­sul­tants Man­ag­ing Di­rec­tor An­toine El Khoury

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