Sodic to develop top Cairo project in 3 years
Cairo, March 8, 2012
Egypt's Sodic, the country's third-biggest listed developer, has agreed with the authorities to develop projects on its land bank in West Cairo within three years, in a move that protects the assets from possible legal challenge.
Sodic, a luxury property developer, has been spared much of the legal uncertainty over ownership of its land bank that has hit the country's real estate sector and deepened following President Hosni Mubarak's ouster.
The firm agreed with the authorities that, in order to keep its land in West Cairo safe, it would speed up construction on projects there and deliver within the new timeframe, it said in a statement on Thursday.
"We view the event positively as it effectively removes a legal overhang on Sodic's land bank in West Cairo," investment bank EFG-Hermes said in a note.
"The agreement could help Sodic increase the appeal of its off-plan products, which are now free of legal risks pertaining to the land," the note said, adding the deal could help limit cancellations at the project, Westown.
Egypt's property market was a major driver of foreign investment and growth but is now struggling to recover from legal rows over state land sales.
Sodic has not been directly implicated in the land rows but its former chairman, the father-in-law of Mubarak's eldest son, is facing trial for his role in a questionable land sale.
The company said earlier this week it had launched and sold out 160 units of Westown Residence, in its second and third stage. Sodic turned 141 unit sales into contracts worth 193 million Egyptian pounds ($32 million), bringing net sales of new contracts year-to-date to 420 million pounds.
But the new timeframe would have a negative impact on how easily Sodic can sell the land to potential developers and businesses, analysts say.
The firm swung to a third-quarter loss in November. – Reuters
More Construction & Real Estate Stories
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes
- $32m BFH car park work underway
- Bahrain awards $5.8m project tenders
- Spinneys to set up distribution centre at Kizad
- Dubai unveils $300m hitech 'green' city project
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed
- Arabtec unit wins $282m Emaar contract
- Abu Dhabi to host pool & spa expo
- ADCM unit secures $213m bridging loan