Talaat Moustafa Group (TMG) Holding maintained a stable pace of development last year, with real estate transactions dipping by 4% only to hit almost EGP 20.4 bn versus sales in 2018, Invest-Gate reports.
Amid the local market’s quasi-stagnation, the 2019 drop in sales primarily stemmed from net acquisition activities valued at EGP 300 mn for developing one school in east Cairo’s Rehab City, compared to directing EGP 1 bn for a wider scope of projects in the prior year, TMG Holding revealed in a bourse filing on January 5.
In 2019, the listed property developer had generated EGP 5.4 bn of marketing several non-residential units, up by 86% compared with the previous year, registering around 27% of last year’s total purchases. Meanwhile, it sold EGP 473 mn worth of fully-serviced apartments and villas, which are awaiting revamps to integrate into east Madinaty.
Madinaty’s newly-introduced phase, dubbed “Privado,” has also contributed to these upshots, with about EGP 5.7 bn deals sealed since its launch last June, besides the impressive sales of the New Administrative Capital (NAC) flagship project, or “Celia.”
As a net effect to last year’s strong results, alongside sound sales proceeds, TMG Holding managed to lower industry-related bank lending by about EGP 200 mn. This comes in line with the company’s strategic plan toward long-term financial solvency, in the wake of liquidity woes casting the Egyptian real estate sector, according to the statement.
TMG Holding envisages an optimistic outlook for property transactions and plans to post kind of the same results during the current year, particularly in light of the company’s extensive land bank, aiming to adopt new technologies as part of its service provision, it concluded.