Madinet Nasr for Housing and Development (MNHD) has been working in urban development since 1959 and focuses on East Cairo, where its main projects, Taj City and Sarai, are located. The company owns a large portfolio of land plots. Thus, Invest-Gate meets Abdullah Salam, managing director and CEO of MNHD, discussing the company’s future plans, targeted sales, and the volume of current investments.
How much is the land portfolio of MNHD?
The company owns about 10 mn sqm of land plots, of which five mn sqm of them are developed or under development. The remaining five mn sqm are still undeveloped. These lands are divided between the company’s two main projects, Taj City and Sarai. Besides, MNHD developed Nasr City district that spans over 23,000 acres (84 mn sqm), and the company still has assets there.
What is MNHD’s future plan for developing Taj City and Sarai projects?
MNHD has already partnered with other companies for non-residential projects. On September 26th, the company will announce the opening of the first school in Taj City, and establishing a huge club to serve the project’s clients, in addition to a hospitality and entertainment part. These services are also applied to Sarai project.
What about the implementation and delivery of both projects?
In 2021, MNHD achieved a record number of deliveries, despite the difficult challenges we witnessed over the year. The company managed to deliver 1,090 units in Taj City and Sarai projects last November and December. In 2022, MNHD aims to deliver between 1,500 and 2,000 units. The company is also trying to add innovation, in addition to offer fully finished products to flourish the real estate market in Egypt and reduce the phenomenon of vain properties.
What is the value of the company’s target sales and investments in 2022?
In H1 2022, MNHD achieved EGP 3.3 bn in contracted sales, in addition to EGP 1 bn in reservations, compared to EGP 2.8 bn in 2021. In 2022, the company plans to assign works worth EGP 3 bn. Actually, the company assigned a number of leading construction companies for Taj City project, and another one for Sarai project.
What is the increase of prices in the company’s projects in 2022?
Despite the difficult economic conditions such as inflation and rising interest rates, MNHD was keen on adding a percentage of no more than 5-7% to its projects offered. The company is studying innovative ways to reduce the impact of price increases.
Is there an intention for future partnerships?
MNHD is more focused on developing its projects by itself at the moment and could partner with huge brands to serve the residents in Taj City and Sarai.
What are the financing means that MNHD relies on?
MNHD is looking for different financing means, such as banks, direct loans, Sukuk, among others. In 2022, the company made securitization, besides selling and repurchasing the land, such as the financial leasing idea.