Chairman and Chief Editor
Bedour Ibrahim

Delivery of 1427 units and net cash receipts of 10.5 billion pounds were achieved.

Tuesday 19/March/2024 - 03:03 PM
Eng. Ayman Amer،
Eng. Ayman Amer، General Manager of SODIC

Sixth، of October Development and Investment Company (SODIC) is committed to expanding its presence in the Egyptian market and exploring new opportunities while prioritising accelerating project implementation rates and delivering products that add value to the local market.

Eng. Ayman Amer، General Manager of SODIC

With a 27-year legacy in real estate development، SODIC has consistently grown and maintained its reputation، earning distinction among clients.

The acquisition of a majority stake in Sixth of October Development Company (SODIC) by UAE’s Aldar Properties has brought about significant positive changes، enhanced the company’s business strategy and bolstered its expansion efforts in Egypt. 

This move has positioned SODIC as a global entity with an institutional strategy and embarked on a comprehensive expansion plan within the Egyptian market.

According to Engineer Ayman Amer، General Manager of SODIC، the company remains vigilant in its search for available land parcels to supplement its existing project portfolio in emerging urban areas despite already boasting an extensive land portfolio.

We are committed to sustained expansion and are actively pursuing land acquisitions of at least 400 acres.

Amer emphasised that SODIC aims for land plots spanning no less than 400 acres to align with its expansion objectives.

Project Portfolio

West Cairo projects contributed 51% to total contracted sales last year.

In terms of project portfolio، the General Manager of SODIC disclosed that the company’s ongoing development spans approximately 1700 acres، comprising 750 acres in the North Coast، 500 acres in West Cairo، and 450 acres in East Cairo.

We augmented our land portfolio by acquiring 620 acres on the North Coast

He highlighted the company’s plans to establish four hotels across the North Coast and West Cairo، totaling 500 units.

“This initiative aims to significantly boost the contribution of the hotel and shopping Centre sector to SODIC’s revenues، with a target of increasing it from the current 7% to approximately 15%  by 2027.”

Furthermore، he noted that SODIC has secured a partnership with Nobu، a prominent global hospitality brand، to manage two hotels in the North Coast and West Cairo، alongside two additional projects in these regions.

Regarding investment، the company intends to inject approximately EGP10 billion into contracting contracts slated for its projects in 2024، compared to approximately 6 billion pounds in the previous year.

Prudent Policies

In 2023، we implemented a strategy to curtail sales despite rising demand while also investing 2 billion pounds in raw materials procurement as a precautionary measure.

The company’s General Manager highlighted a strategic decision made in 2023 to curtail sales despite escalating demand for its projects، aligning with its cautious approach and commitment to expediting project execution.

He elaborated on the precautionary measures adopted by the company، emphasising the procurement of raw materials and building supplies as a key strategy. 

In 2023 alone، the company invested EGP2 billion in raw materials procurement to sustain project implementation momentum and mitigate the impact of price fluctuations.

Key Sales Figures

In 2023، SODIC reported contract sales totaling 30.26 billion pounds، marking a robust 42%  increase compared to the previous year. This growth was fueled by the sale of 1984  units across the company’s diverse project portfolio.

Contractual sales in 2023 amounted to 30.26 billion pounds.

The West Cairo region significantly contributed to SODIC’s sales performance، accounting for 51% of total contracted sales. 

This was buoyed by the sustained demand for projects spanning 464 acres and The Estates project، which collectively generated approximately 12.9 billion pounds in sales.

Projects in East Cairo contributed 32% to total contracted sales، primarily driven by robust sales of the Sodic East project، which accounted for 16% of total sales for the year. Meanwhile، North Coast projects contributed 17% to contracted sales in 2023.

SODIC’s net profits surged by 164% in 2023، reaching 1.37  billion pounds after taxes and minority interest deductions.

Furthermore، the company reported a 32%  year-on-year increase in activity revenues، totaling 10.33 billion pounds.

Significant Expansions in 2023

In May 2023، SODIC finalized the acquisition of 180 acres situated directly south of the Caesar project on the North Coast. Remarkably، the project was launched within an expedited timeframe of no more than three months. Subsequently، in July 2023، the company inked a revenue-sharing agreement to develop an additional 440 acres on the North Coast.

Throughout 2023، SODIC successfully delivered approximately 1427 units، including 911 units، across various projects in East Cairo، resulting in net cash receipts of roughly 10.5 billion pounds.

Delivery operations commenced in the expansive 655-acre Sodic East Project in East Cairo in 2022، with the company handing over 431 units in 2023.

SODIC initiated handover operations in its prestigious The Estates project، solidifying its position as the inaugural real estate developer to commence handover activities in New Zayed.

Reflecting on SODIC’s achievements in 2023، Ayman Amer remarked، “We are extremely pleased with the robust results and growth attained across all financial and operational metrics.

Our primary focus throughout 2023 was achieving a delicate balance between expansion and project profitability.”

He further added، “As we embark on 2024، we anticipate yet another year marked by significant accomplishments and outcomes driven by our disciplined management approach، a hallmark that sets SODIC apart.

The sustained demand for SODIC projects serves as a testament to the strength of our brand and the underlying principles and mechanisms governing the Egyptian real estate market.”

Our current project land portfolio under development spans 1700  acres.