NUCA to launch third phase of part­ner­ship projects early next year

EGP 7.8BN OF SALES ACHIEVED FROM OF­FER­ING 5 SKY­SCRAPERS IN NEW ALAMEIN CITY, SAYS AB­BAS

The Daily News Egypt - - Business - By Shaimaa Al-Aees

Waleed Ab­bas, as­sis­tant hous­ing min­is­ter for the New Ur­ban Com­mu­ni­ties Au­thor­ity (NUCA) said that the au­thor­ity has adopted 15 min­is­te­rial ap­provals for projects in the New Ad­min­is­tra­tive Cap­i­tal, ex­pect­ing to reach 19 ap­provals by the end of the cur­rent cal­en­dar year.

Daily News Egypt in­ter­viewed Ab­bas to dis­cuss the NUCA’s devel­op­ment strat­egy re­gard­ing the new cities, the tran­script for which is be­low, lightly edited for clar­ity:

The gov­ern­ment has re­cently an­nounced 20 new cities. When will the NUCA de­liver the first phase of these cities?

Im­ple­ment­ing 20 new ur­ban cities is un­der­way, rep­re­sent­ing the fourth­gen­er­a­tion cities, in­clud­ing sev­eral cities, most notably the New Ad­min­is­tra­tive Cap­i­tal, New Fashn, New Mallawi, New Sphinx, New Obour, New Alamein, and New Man­soura. The NUCA plans to de­liver the first phase of the 20 new cities by the end of the fis­cal year 2020/21 in prepa­ra­tion to ac­com­mo­date peo­ple in the same year.

NEW ALAMEIN CITY WILL IN­CLUDE HOUS­ING UNITS FOR COM­MU­NITY SEG­MENTS STARTS FROM SO­CIAL HOUS­ING TO LUX­URY HOUS­ING

Are there any up­dates re­gard­ing the New Alamein sales?

The sales achieved from of­fer­ing 5 sky­scrapers in New Alamein city have reached EGP 7.8bn out of a to­tal of 15 sky­scrapers, and will be launched in the city which is be­ing im­ple­mented by the NUCA, and City Edge De­vel­op­ments is mar­ket­ing them.

The city will in­clude hous­ing units for com­mu­nity seg­ments start­ing from so­cial hous­ing to lux­ury hous­ing.We be­lieve that a suc­cess­ful city is where all res­i­den­tial seg­ments live in, not just one.

What is cur­rent sit­u­a­tion of the devel­op­ment process in New Man­soura city?

The first phase of New Man­soura city in­cludes the im­ple­men­ta­tion of the units of the projects Sakan Misr, Dar Misr, and vil­las. More­over, we plan to of­fer units for mid­dle-in­come hous­ing in the city soon,as the NUCA be­gan to of­fer projects with an in­vest­ment re­turn to di­rect sales pro­ceeds in order to im­ple­ment fa­cil­i­ties’ work and other hous­ing projects in the city.

Fur­ther­more, road devel­op­ment is be­ing con­structed to link the cities of New Man­soura and old Man­soura for trans­porta­tion be­tween the two cities.The road al­ready ex­ists, but the au­thor­ity is de­vel­op­ing it.

The gov­ern­ment has made great progress in the New Alamein city. Can you ex­plain the cur­rent devel­op­ment process?

The gov­ern­ment is cur­rently de­vel­op­ing 14,000 fed­dan rep­re­sent­ing the first city phase, where the NUCA is cur­rently com­plet­ing the con­struc­tion and build­ings of the Na­tional Univer­sity, in co­op­er­a­tion with the Univer­sity of Alexan­dria. Fur­ther­more, 7.5 km out of a to­tal of 14 km of the tourist walk­way in the city are com­pleted, and the au­thor­ity aims to run this walk­way and open it to cit­i­zens by next sum­mer.

The gen­eral mas­ter plans for three in­dus­trial de­vel­op­ers are be­ing im­ple­mented with a to­tal area of 625 fed­dan, and 500 units of the Sakan Misr project are be­ing im­ple­mented and will be of­fered early next year.

Some de­vel­op­ers blame the NUCA be­cause it com­petes with them in of­fer­ing units for spe­cific seg­ments. What is your opin­ion?

The res­i­den­tial units that the NUCA of­fers to cit­i­zens are not con­sid­ered com­pet­i­tive with the pri­vate sec­tor’s units, but a means of con­trol­ling the prices in the real es­tate mar­ket, and the client is the fi­nal judge to choose be­tween the NUCA’s units and what de­vel­op­ers of­fers.

The NUCA of­fers unit prices lower than de­vel­op­ers, there­fore, con­trac­tors who of­fer units with high prices must pro­vide ad­di­tional ben­e­fits for their cus­tomers.

The prices de­ter­mined by the au­thor­ity in­clude the cost of land and the im­ple­men­ta­tion cost as well as profit mar­gins and yet, still they are lower prices than the prices of de­vel­op­ers.

How many de­vel­op­ers bought book­lets of con­di­tions for the last in­vest­ment of­fer­ing in New Man­soura and New Alamein?

Four plots of land were of­fered for ur­ban ac­tiv­ity in New Man­soura city, and 16 book­lets of con­di­tions were sold by mid-Novem­ber. More­over, one plot of land was of­fered in New Alamein and 14 real es­tate de­vel­op­ers have bought book­lets of con­di­tions, which re­flects the im­por­tance of the lo­ca­tion of that plot of land and the flow of de­mand for in­vest­ing in the city.

How many min­is­te­rial ap­provals have been is­sued in the cur­rent year and what is the tar­get by the end of the year?

The NUCA has ap­proved 81 in­vest­ment projects in over 16 cities, spread out over a to­tal of 13,697 fed­dan.

More­over, nine other min­is­te­rial ap­provals for new projects will be re­ceived be­fore year-end, bring­ing the to­tal to 90 projects ap­proved by the min­istry by the end of 2018.

Ad­di­tion­ally, 15 min­is­te­rial ap­provals were is­sued for projects within the New Ad­min­is­tra­tive Cap­i­tal, with four more min­is­te­rial ap­provals are ex­pected to be is­sued soon, bring­ing the to­tal min­is­te­rial ap­provals for projects in the Ad­min­is­tra­tive Cap­i­tal to 19 ap­provals by year-end.

How do you see de­mand on im­ple­ment­ing projects in Up­per Egypt?

It is note­wor­thy that there is in­creased de­mand by de­vel­op­ers to in­vest in Up­per Egypt and new cities out­side Cairo and tra­di­tional cities, as the NUCA has many re­quests for ac­quir­ing lands in new cities in Up­per Egypt.

The lat­est in­vest­ment of­fer­ing did not meet the ex­pected de­mand by de­vel­op­ers and we found that

There are three plots of lands which were of­fered in Sixth of Oc­to­ber City and seven in­vestors have ap­plied, and seven plots of land were of­fered in Sheikh Zayed city and three de­vel­op­ers have ap­plied. In ad­di­tion, two plots of land in So­hag in­ter­ested four in­vestors, and three plots were of­fered in New As­siut by three de­vel­op­ers who have ap­plied, and three plots in New Dami­etta and only one de­vel­oper has ap­plied, plus only one in­vestor ap­plied for one plot of land out of a to­tal of six plots which were of­fered in Sa­dat city, Menofiya gov­er­norate. Mean­while, no de­vel­op­ers have ap­plied to ac­quire lands in New Cairo, New Aswan, Qena, and Akhmim.

The cities that have not wit­nessed de­mand or have few re­quests will be re-ex­am­ined to de­ter­mine the rea­son for the lack of in­ter­est through a study by the au­thor­ity’s devel­op­ment of those projects.We ex­pect to start the launch of the third phase of the part­ner­ship projects early next year.

no one ap­plied to in­vest in some cities. What is the fate of the devel­op­ment of those cities that no one has ap­plied to in­vest in?

Waleed Ab­bas, as­sis­tant hous­ing min­is­ter for the New Ur­ban Com­mu­ni­ties Au­thor­ity

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