Dr. Asaad Salama, Chairman of the Board of Directors of Infinity Towers Real Estate Development Company, said that the company aims to inject investments of 1.5 billion pounds during the year 2024.
Salama said that the company is developing the Infinity Tower project in the Administrative Capital, its first project in the Egyptian real estate market.
Since the project was launched, Infinity Towers has invested EGP 1.5 billion in construction works, indicating that the company is keen on accelerating the project’s implementation rates and adhering to the delivery schedule with clients.
The project “Infinity Tower” is a commercial, administrative, and hotel activity. At 210 meters high, it features commercial spaces of up to 11,000 square meters dedicated to attracting major brands from restaurants and retail stores.
Additionally, the project includes 28 floors of administrative offices, with areas ranging from 118 square meters to 1560 square meters, of column-free office spaces to accommodate all major companies.
For the first time in Egypt, the tower includes five levels of underground parking, the largest underground parking area in Egypt. It accommodates around 900 cars for tower visitors, along with 18 elevators to facilitate movement between tower floors quickly and with the highest fire safety rates.
It was noted that Infinity Towers relies on implementing environmental sustainability standards to reduce carbon emissions and optimize energy consumption in the project. This aims to preserve the environment and achieve the lowest operational costs for customers.
Salama stated that the project’s implementation rates are proceeding according to the specified schedule, with the execution rate exceeding 65% and the building’s height reaching 150 meters out of 210 meters.
He added that the New Administrative Capital is the most suitable and cost-effective place for constructing skyscrapers and high-rise towers due to the lower excavation and foundation costs, which are attributed to the soil type.
The Infinity Towers company aims to inject investments worth 1.5 billion pounds into construction works in the project during the current year as part of its plan to accelerate project execution rates.
It was mentioned that 500 million pounds were invested in construction works in the project during the year 2023 to start the delivery of project units by the end of 2024.
Salama stated that the company wants the project’s execution rates to exceed the sales volume to avoid any financial losses due to price differences and ensure compliance with the execution and delivery schedule.
He added that the company has adopted a hedging plan to overcome the continuous fluctuations in construction materials and commodities prices over the past period through several axes, the most prominent of which is purchasing all the necessary materials for building the project until its completion since the project’s launch.
Providing construction materials and commodities has contributed to overcoming any financial risks resulting from price differences in the execution cost.
Infinity Towers decided to stop selling project units last December due to a lack of clarity in vision and the absence of a clear mechanism for pricing real estate products at the moment. In addition, the company wanted to avoid any financial losses in case of pricing below the fair market price.
He mentioned that the increase in the prices of project units has reached about 50% since the beginning of 2023 until now, and this percentage is subject to increase in case of new variables in the real estate market, such as increases in construction materials prices or inflation rates.
Salama added that the percentage of sales to foreigners from the total project sales reached approximately 60%, mainly from the company’s clients outside Egypt in countries like Saudi Arabia, the UAE, and other international offices. Following them are Egyptian clients working abroad, accounting for about 30% of total sales.
He explained that the company is exploring several new investment opportunities in different areas as part of its expansion plan in the market and increasing its business volume.
Salama also pointed out that all Infinity Towers company projects will be limited to commercial, administrative, and hotel towers.
Infinity Towers is negotiating with the New Urban Communities Authority to acquire a 10,000-square-meter land plot in the New Administrative Capital to execute a commercial hotel project during the upcoming period.
Salama added that the negotiation is in its final stages, and all details will be announced upon signing the land contract with the New Urban Communities Authority.
He explained that a study is underway for an investment opportunity in the Downtown area of Alamein City, with an area ranging from 8 to 10 thousand square meters, to execute a commercial administrative hotel project.
Salama mentioned that a contract has been signed with an international brand to manage the hotel part of the “Infinity Tower” project to ensure the product’s quality after customer delivery and operation, as the hotel section requires specialized management.
Salama said that hotel units are witnessing significant demand from foreign customers due to the level of service provided in those units and the finishing quality. With the increasing interest of foreign customers in investing in the Egyptian real estate market, hotel units are becoming the most sought-after product.
He added that Infinity Towers is keen on specializing in towers and skyscrapers due to the shortage of this type of properties in Egypt and the need for more companies with experience in executing such projects.
He explained that the upcoming period will witness a revival in real estate companies’ sales due to increased interest rates in all types of real estate products, residential, commercial, and administrative, along with significant economic stability.
Salama mentioned that Infinity Towers relies on self-financing to execute its current project, with no intention of obtaining bank loans or issuing securitization bonds as the project delivery approach.
He said that the company has paid 62% of the total price of the land for the “Infinity Tower” project to the New Urban Communities Authority and continues to pay the due installments on time.
