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Sodic of Egypt Expects Income Boost From Finished Units, Syria and Leasing
Six of October Development & Investment Co. expects to earn 4 billion Egyptian pounds ($700 million) in the next three years as it completes projects and diversifies, a senior executive said.
Most revenue over the next year for the Cairo-based luxury real-estate developer will come from the delivery of 800 to 900 homes in its flagship Allegria development on the outskirts of Cairo, Chief Financial Officer Ahmed Dabbous said in a Sept. 2 telephone interview.
“The luxury segment continues to be very strong,” said Dabbous. “Maybe people are more selective now because they have more options, but if you have a good product, you’ll do well.”
Egypt’s economic growth may accelerate to 5.7 percent in the current fiscal year through June, with a “strong investment recovery” helping consumer spending, EFG-Hermes Holding SAE said last month. The economy grew 5.3 percent in the previous year. Six of October, also known as Sodic, on Aug. 25 posted its first quarterly profit since 2008, while Palm Hills Developments SAE reported a 37 percent increase in sales in the same quarter.
Sodic in June bought a 50 percent stake in Damascus-based Palmyra Real Estate Development Co. for $40.5 million, an investment Dabbous said will contribute to the bottom line in “two to three years.” The company expects more revenue from leasing retail outlets now under construction and as it completes projects by its Syrian unit, the CFO said.
The shares gained 0.2 percent to 92.64 pounds at the 1:30 p.m. close in Cairo, valuing the company at 3.36 billion pounds.
To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net
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