Yassin Mansour: 25 billion pounds, the total investment of Palm Hills New Cairo project

Palm Hills Development Company announced contract sales of 10 billion pounds in the "Palm Hills New Cairo" project since its launch so far, including more than 2 billion pounds during 2021.

Yassin Mansour, Chairman of the company, said that the project with a total investment of 25 billion pounds, and is located on an area of 500 acres, which is an integrated housing project, and includes apartments and residential villas, and an administrative commercial part that is launched in 2022 on an area of 100 acres, noting that the project will be completed in 2027.

He added that the project is being implemented in partnership with the state and includes 4,400 units in various areas, with a total investment of 25 billion pounds. 145 units of the project were delivered ahead of schedule with clients.

He confirmed that it was planned to start the delivery of the second phase of the project in the first quarter of 2022, covering 100 acres, and that the project would be implemented in 7 phases, and by the next year more than 50% construction would be achieved.

He pointed out that the demand for real estate is expected to increase in the coming period, since investment in real estate is the safest place for consumers during periods of inflation, given the current wave of inflation in the world, stressing that the Egyptian real estate market is strong and secure based on real demand.

He stressed that so far the volume of mortgage financing in the domestic market is very limited. The state has recently taken steps to grant low-interest mortgage financing, the latest of which is the mortgage financing initiative at 3%, stressing that the state is working with developers to remove all obstacles faced by the market.

It was difficult to reprice units sold to customers to deal with the inflation crisis, as the company was committed to its customer contracts and was uncompromised.

The project was being implemented by seven contractor companies, most notably Dura Construction, Solera and Solid, which delivered the project within four years of contracting.

He added that the company pumped 1.9 billion pounds worth of construction in its projects by the end of the third quarter of this year, compared with about 800 million pounds during the same period last year, reflecting the accelerated construction volume.

He said that the company carried out its first securitization operation at the beginning of the year with approximately LE 1.8 billion and is planning its second securitization during the current period with an estimated LE 1.1 billion.

He explained that there is a joint bank account with the Urban Communities Authority for the project. The state receives 28.4% of any account collections, in addition to an in-kind share of 175,000 residential and 17,000 commercial meters. The share in kind to the state will begin to be delivered by 2025. The total investment invested in the project so far has reached approximately 5 billion.