Raymond Ahdi, the CEO of the company, announced these expansion plans based on the positive outcomes achieved in the previous year.
During a press conference, Ahdi stated that their focus for the current year is to deliver approximately 1,500 units. He highlighted the significant progress made by Wadi Degla Development in addressing the construction backlog, which was exacerbated by the impacts of the pandemic. So far, they have successfully delivered 2,350 units.
To protect against potential losses resulting from inflation, the company has devised a plan. Operational challenges in 2023 led to a revision of their initial expectations, reducing the projected deliveries from 2,000 units to 1,600 units due to a 60% increase in construction costs. Nevertheless, this is still a substantial improvement compared to the 750 units delivered in 2022.
Approximately 1.5 billion Egyptian pounds have been invested in construction across various projects, and the company plans to double this investment in the current year. This increased investment aims to complete ongoing construction plans and deliver new units, considering the continuous rise in construction costs.
In terms of sales, Ahdi revealed that the company achieved sales worth 2.6 billion Egyptian pounds in the previous year, experiencing a growth of 73% compared to 2022 when sales amounted to 1.5 billion Egyptian pounds. The company aims to achieve 4.6 billion Egyptian pounds in contract sales during the current year. To achieve this target, Wadi Degla Real Estate plans to conduct three new offerings in its projects, including the final phase of “Club Town,” a new phase of “Murano,” and the “Neopolis” project.
Ahdi emphasized that, given the rapid changes and fluctuations in costs, the company prefers not to aggressively expand sales to meet high market demand. He stated, “We believe that for every unit sold, there should be a unit delivered.” Expediting construction and employing flexible pricing policies that align with the dynamic changes in construction costs are considered the best solutions to address the current crisis.
The company is currently studying a capital increase in the near future to cope with current pressures and provide the necessary liquidity for its ambitious construction plan. Wadi Degla Real Estate is part of a holding company that owns a diverse group of companies, enabling the holding company to contribute to the required financing. Ahdi mentioned ongoing negotiations to acquire a 65-acre plot of land in the Ain Sokhna area for a new project, aiming to expand the company’s land portfolio, which currently stands at 5.5 million square meters after successfully developing around 70% of it.
Wadi Degla Real Estate’s portfolio encompasses 16 projects, including the Neopolis project in New Cairo, the Blumar Ain Sokhna village, and the Blumar village in Sidi Abdel Rahman on the North Coast.
