MBG Development intends to establish another villa project in the New Administrative Capital (NAC) on an area of 100 feddan.
Daily News Egypt interviewed MBG Development Chairperson Mahmoud Al Adl to learn more about the company’s projects and expansion plan.
Can you tell us about the updates on the Pukka project in the NAC?
Over the last three months, the company completed the development of 30% of the project.
Pukka is the first residential project in the NAC that has a sky pool. The project spans over 40 feddan and includes more than 1,680 housing units.
How much were the project’s sales?
Pukka’s sales reached about 70% for the residential part, while the sales of the commercial part [Pukka Capital Walk mall] were 30%.
What is the size of Pukka Capital Walk?
MBG is developing a commercial mall comprising of commercial, administrative, and medical units. It consists of three floors built on an area of 6,000 sqm. The price per sqm ranges between EGP 30,000 and EGP 90,000.
What is the value of the project’s investment?
The initial investment cost is EGP 2bn, and the company has disbursed 10% of this figure in the first year of construction. The company plans to spend 30% of the allocated investment in the coming year.
What is the source of the project’s financing?
The project is self-financed, relying on liquidity from the company’s shareholders and sales.
How much did the company pay to the Administrative Capital for Urban Development Company (ACUD) for the project’s land?
The company has paid three instalments out of five to the ACUD, constituting 60% of the land’s total value.
When does the company plan to deliver the project?
We plan to begin Pukka delivery in 2022 and 2023 in accordance with the conditions of the ACUD to complete developing any project in the NAC within four years.
What is the value of the project’s targeted sales?
The project’s targeted sales are EGP 4bn for the residential part, and EGP 800m for the commercial part.
What is the project’s price per sqm?
For residential units, it ranges between EGP 10,000 to EGP 13,000 per sqm, while it varies between EGP 35,000 and EGP 90,000 per sqm for commercial units.
Can you tell us more about Pukka’s payment plans?
We offer a seven-year payment plan with 10% down-payment. We also offer discount on cash payment.
Who is responsible for the project’s consulting?
RMC – Raafat Miller Consulting is responsible for engineering and construction management. Moreover, we have contracted with EHAF Consulting Engineers to oversee the implementation of the Pukka project. EHAF is specialised in project design and construction supervision, as well as providing a wide range of services, such as architecture, interior design, urban design, landscape, roads and bridges, rapid transit systems, water and wastewater, and project management. Moreover, it operates in several countries, such as the UAE, Saudi Arabia, Qatar, and Egypt.
What is the company’s expansion plan?
The company is interested in investing in the NAC, as it is smart, universal, luxurious, and cultural city. Therefore, we are studying developing a villas project on 100 feddan through partnership system. Furthermore, the company is preparing the project’s masterplan and designs. Over and above, the company plans to develop a medical project for athletes in the sports city, on an area of 5 feddan.
What is the estimated investment cost of the project?
The initial investment cost is estimated at EGP 10bn.
When will the company launch the project?
We plan to launch the project within the coming three months.
What is the company’s strategy to export property?
The company pays great interest in exporting property, as we participated over the current year in many real estate exhibitions inside and outside Egypt. MBG has participated in foreign exhibitions in Dubai, Italy, and France. Additionally, the company is organising a promotional campaign in five states of America namely, Washington, Florida, Tennessee, and New Jersey to promote the NAC project itself and then promoting the company’s project inside new capital. The visit will last for two weeks.
When would the company complete the project’s sales?
We believe that the project would be sold out before the end of the coming year.
What other projects the company intends to develop outside the NAC?
The company studies developing a 20-feddan project in Ain Sokhna.
What are your expectations for real estate prices in the coming period?
I expect no increase in prices in the coming period, as the market is stable and accordingly the prices will be also stable.
How can Egypt develop the real estate sector?
I think the government has to reconsider the mortgage finance system and broaden the finance limit to about EGP 1m per unit to help clients buy their desired unit in the light of decrease of the local purchasing power.
Nevertheless, I call on the ACUD to accelerate issuing building permits for the NAC projects to ensure delivering the project as soon as possible.
I also think the ACUD has to extend its instalment payment plan for lands from five to seven instalments to help companies focus on the development process of their projects.
What are the other projects the company is developing now?
MBG Development has been operating in Egypt’s real estate market for 35 years, and it has developed several residential projects in the cities of Damietta, Mansoura, and Ras El Bar.
In Ras El Bar, the company has developed three projects: Sunset Festival, Sunset El Nakheel, and Sunset Gardens. In Mansoura, MBG built Al Oula City on an area of 27,000 sqm and a World Trade Centre on an area of 20,000 sqm, in addition to the International Medical Centre on an area of 10,000 sqm, consisting of specialised medical centres overlooking the Nile in Mansoura city.