To cooperate in times of social distance is a risk. However, to join forces and dominate the market amid COVID-19 is a bold move that sets the scene for future real estate partnerships. Invest-Gate digs deeper into one of the most prominent mergers that took place in 2020, with market leaders Mr. Amr Kandil CEO of Premises Real Estate, Eng. Ahmed Maksoud CEO of Kayan Real Estate, and Eng. Mohamed Aloosh, managing director of Premises Real Estate, explaining how Kayan and Premises became Kayan Premises Real Estate (KPR).
You managed to pull off a very successful partnership amid a pandemic. What was the purpose of this cooperation at a time like that?
Amid the market noise, it could be quite difficult for real estate investors to settle on the best opportunity. The abundant number of deals from developers tend to make investors more skeptical as to when to take a step and place the right investments. Consequently, it was imperative for market experts to intervene and begin to find more strategic ways of investments.
So, we began to aspire to develop the market amid the pandemic in the most effective way. For us, that was actualized through the partnership between Kayan and Premises, which aims at finding the best investment opportunities with the best return of investment (ROI).
What is KPR’s approach towards investors and clients?
Our idea was based on finding credible developers before we target investors; investors are easy to find, but earning their trust could be quite difficult. Thus, we aim to reach out for developers first and then accordingly approach investors.
We began to seek strong developers with flagship projects and what is known as a hero product. We started to handpick topnotch projects and one of those projects was with SODIC. This process took place in 2020 and the company achieved sales worth EGP 1.5 bn with different developers and a mix of residential and commercial products.
This idea reverberated in the whole market while we were simultaneously about to create the first event to launch our first product of this project. An EGP 250 mn project by SODIC was selected accordingly, which is the company’s New Zayed flagship project, and will be launched in an event showcasing our idea.
Thus, our clients are in fact willing to invest, but they do not necessarily know where to place their money. And this is where we come in, as market experts with minimum of 40 years of experience, to guide our clients to place their investments. Hence, we play a very crucial role to restore investors’ confidence and equip them with the best opportunities.
What is the company’s biggest achievements in 2020? And what is your 2021 forecast?
Our purpose in 2020 was to develop a robust inventory with attractive products and that’s what we continue to build our strategy upon. We like to share with our clients our marketing expertise in reselling their products, and recommend products, developers, and investment opportunities to our clients accordingly.
Prior to 2020, many new investors would emerge to the market, but then disappear after a while. The merger of two giant corporations such as Premises and Kayan and their new market presence starting from 2021 will inevitably attract huge investments and thus, boost investors’ confidence in return. We forecast that 2021 will be the pinnacle of real estate market growth.
How does KPR run a huge amount of funds with prospects to a high criteria ROI?
With the merger of KRP, we intend to put a standardized framework for ROI in order for investors to follow. Kayan was able to achieve this number of sales of EGP 1.5 bn amid the peak of the pandemic in 2020 not because it offered deals and discounts at that time, but rather because of our choices amid the crisis.
Our work is not traditional; the market is ever-changing and so should its needs and clients. We offer ideas that are out of the box to cater to those needs. Our role is divided into two parts: the first one is to find the best opportunity for the investor and the second part is to resell the units for the investor at the best time and the best price. Most importantly, our work is in line with Egypt’s real estate development plan, not to mention that we link investors, developers, and customers together.