SODIC’s H1 Revenues Jump to EGP 2.02 bn

SODIC’s H1 Revenues Jump to EGP 2.02 bn

Sixth of October Development and Investment Company (SODIC) saw its revenues jumping 92% to EGP 2.02 bn in H1 2019 from EGP 1.05 bn in the year-ago period, with east Cairo projects logging 66% of the posted value, Invest-Gate reports.

“Gross profit grew 23% to record EGP 630 mn during the period, reflecting a gross profit margin of 31% … During the six months period, SODIC released EGP 2 bn worth of new launches to the market, mainly Allegria Residences, EDNC, and V Residences, which together accounted for 70% of the new launches,” read the company’s financial report on August 8.

Additionally, the Egypt-based developer handed over 441 residential units in the January-June period of 2019, compared to 358 properties in the prior-year period, with east Cairo’s Eastown Residences and Villette together representing 59% of delivered homes, the statement revealed.

However, net contracted sales for H1 2019 fell to EGP 2.3 bn versus EGP 2.5 bn a year earlier. Besides, net profits declined to EGP 336 mn during the six-month period, compared with EGP 373 mn in the corresponding period last year.

As for the company’s forthcoming additions, SODIC stated, “The launch plan for the year is heavily weighted to the second half, with Al Yosr [land plot] and the 500-acre [project] coming online towards the end of the year.”

On July 14, SODIC and the New Urban Communities Authority (NUCA) agreed to change the land use of a 300-acre agricultural plot, located in west Cairo’s Sheikh Zayed and owned by the former’s subsidiary, Al Yosr for Projects and Agricultural Development, to residential. According to the latest statement, “This paves the way for the planned launch of the project by the fourth quarter of 2019.”

With regards to the 500-acre development, back in March, the property developer inked a partnership agreement with NUCA to build a public-private partnership (PPP) urban project in Sheikh Zayed. The fully-fledged flagship, which is slated for kickoff in Q4 2019, will be constructed at a value of EGP 43 bn, upon which NUCA will allocate up to EGP 15.3 bn over 11 years.

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