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CAIRO, Nov 14 (Reuters) - SODIC, Egypt’s third-biggest listed property developer, has swung to a quarterly net profit, helped by delivering homes at the upscale Allegria residential project west of Cairo.
The country’s real estate industry was thrown into turmoil by last year’s uprising against President Hosni Mubarak, hitting demand for high-end property.
SODIC said on Wednesday it made a third-quarter net profit of 46.8 million Egyptian pounds ($8 million), compared with a net loss of 38 million in the 2011 period.
In July, it was given an extra two years by authorities to complete two phases of Allegria, one of several new suburbs being built on the outskirts of the congested capital, covering 3.6 million square metres of land.
SODIC said it had delivered 70 units during the third quarter worth 215 million pounds and was “well in line” to deliver a forecast 350 units in 2012.
“Strong sales, on track unit delivery, timely cash collection and secured financing are all reflected in its healthy balance sheet,” it said.
Third-quarter revenue was 222 million pounds boosting nine-month revenue to 862 million. SODIC does not fully recognise revenue until it delivers units.
It has been spared much of the legal uncertainty over land bank ownership that damaged investor confidence in the sector since Mubarak was ousted.
An agreement with authorities in March to develop projects on its land bank in West Cairo within three years protected its assets from possible legal challenges.
It launched the fifth phase of its Westown Residences during the third quarter which contributed to a nine-month record of gross new contracted sales of 1.47 billion pounds.
SODIC shares were up 0.1 percent at 20.8 pounds by 1215 GMT, ($1 = 6.1013 Egyptian pounds) (Reporting by Tamim Elyan and Shaimaa Fayed; Writing by Tamim Elyan; Editing by Dan Lalor)