The company aims to pump 1.2 billion pounds into the construction of its projects in the Administrative Capital
Akam Development targets 2.2 billion pounds in contractual sales by the end of this year
Akam Real Estate Development Company is studying the development of a coastal project, differentiating between two plots of land, one with an area of 60 acres and the other with an area of 100 acres. It is also studying the development of two new projects in the Administrative Capital, including a commercial project on an area of 20,000 square meters during the next year.
Idris Mohamed, managing director of Akam Real Estate Development, said that the company aims to achieve contractual sales estimated at EGP 2.2 billion by the end of 2021.
He added to “Al Borsa”, that the company achieved sales of 1.6 billion pounds in the “Seen 7” project, including 460 million pounds, representing 55% of the third phase of the project, within two months of the launch of the stage, and plans to reach that percentage to 85% during the activities of the exhibition. “Cityscape”, as the company targets total sales of 890 million pounds for the third phase.
The “Seen 7” project is located on an area of 40 acres, in the R7 area of the new administrative capital. The project’s investments amount to 4.5 billion pounds, and it includes 1.6 thousand units.
Mohamed explained that the company has completed 45% of the project’s construction since the start of work, and plans to reach the construction percentage to 65% by the end of this year.
He pointed out that the unit prices in the project have increased by 14% since the launch of the project in September 2020, and the company has launched and marketed 3 phases of the project within a year, which confirms the feasibility of investing in the new administrative capital.
He stated that the company assigned to the alliance of the YBA Engineering Consulting Office and Moharram Bakhoum the supervision and engineering and executive consultancy work for the “Seen 7” project.
Mohamed said that the company has completed 70% of the construction of the “Scenario” project, and it is planned to deliver the first phase of the project during the month of December, with a total of 350 units.
He added that the project is located on an area of 40 acres in the R7 area of the Administrative Capital, and includes 1.6 thousand units with various areas ranging from 112 to 458 square meters, in addition to a commercial mall for the project.
explained that company It aims to pump 1.2 billion pounds into the construction of its projects in the New Administrative Capital, as part of the company’s plan to speed up the implementation rates of the “Scenario” and “Scenario 7” projects and deliver them according to the timetables agreed upon with clients.
He pointed out that the company has a study center specialized in determining the needs of customers in its projects and the continuous search for the mechanisms of well-being enjoyed by the customer within the project.
He said that this concept is based on the absence of any problems for the client within the project, and if they exist, the company identifies solutions for them that achieve the client’s comfort, as the company relies on the era of innovation based on meeting the client’s requirements.
Mohammed added that the operation of services in the project is related to the number of customers residing in the project, but the company has a plan to prepare its services for operation to customers when the units are delivered.
Expectations of a rise in real estate prices with the move of government district employees
He pointed out that Akam Development is committed to paying the land premiums to the Administrative Capital for Urban Development Company, which reflects seriousness, financial solvency, and a clear plan to link self-financing and cash flows to pay land installments and adhere to the implementation timetable.
He explained that the company enjoys a large financial solvency through which it can complete the implementation of its ongoing projects, and the company does not mind obtaining bank loans or transferring part of its clients’ installment portfolio through the securitization system and benefiting from it in financing projects.
He expected a revival of sales during the second half of this year, especially in the new administrative capital and fourth-generation cities, which are witnessing a remarkable growth in the volume of demand for various real estate units.
He stressed that the state has given real estate developers an opportunity to put forward projects with new ideas, so that the administrative capital becomes an opportunity to launch innovations that enrich the real estate market, support the entire Egyptian economy and contribute to attracting foreign investments, as the new administrative capital reflects a new vision for Egypt by launching a smart and sustainable city. The emergence of a new generation of real estate developers who are implementing various projects.
He expected a rise in real estate prices as the government district employees moved to the new administrative capital, as a result of operations and demand creation, and the availability of livelihoods in it, as the state seeks to create an integrated sustainable city.
Idris said that investing in the administrative capital now is a promising opportunity, especially with the approaching operation of the government district and the transfer of ministries and parliament, which enhances investment returns there and makes it a central hub to attract more investments.
He added that one of the most important factors in exporting real estate is providing numbers and information clearly and accurately for the projects and units to be exported, and this can be done with the establishment of new cities for easy inventory of projects.
He explained that clear definitions of the real estate export system must be established, including the real estate exporter and who is the developer qualified to export, whether there are certain areas to export real estate or are all areas suitable for this, and this is done through approved studies internally and externally carried out by the state or specialized companies.
He suggested the establishment of an international marketing company with the support of developers, marketers and the state, whose role would be to market Egypt in general first, and to market the projects of real estate development companies externally.
He pointed out that the state’s decision not to start marketing any project before implementing 30% of it primarily aims to regulate the real estate market and ensure that the developer has a financial solvency of not less than 30% of the total project cost, and therefore limiting the market to serious developers only, as well as the decision aims to maintain Client money.
Mohamed said that the Egyptian real estate sector succeeded in facing the “Corona” crisis, and sales witnessed a revival during the current year as a result of the announcement of new proposals and the completion of existing projects, as well as development projects implemented by the state in a large number of new cities.
He added that «Akam» consists of 3 entities: Benayat Investment Company, Residence Company and Al-Muhaid Saudi Holding Company, with a paid-in capital of 300 million pounds and an issued capital of 3 billion pounds.
The article, the managing director: “Akam Developments” is studying the development of a new coastal project during 2022, which was written in Al Borsa newspaper.