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UPDATE 3-Egypt's SODIC signs $460 mln of sales contracts in first nine months
November 16, 2015 / 11:18 AM / 2 years ago

UPDATE 3-Egypt's SODIC signs $460 mln of sales contracts in first nine months

* Jan-Sept sales contracts exceed 2014 full-year total

* Targets 2015 sales of 4 bln pounds vs 3 bln in 2014

* Considering buying land on Red Sea, Mediterranean coasts (Adds government payments, clarifies investments)

By Ehab Farouk

CAIRO, Nov 16 (Reuters) - Egyptian real estate developer SODIC signed sales contracts worth 3.6 billion Egyptian pounds ($460 million) in the first nine months of 2015, surpassing last year’s full-year total, it said on Monday.

SODIC, or Sixth of October Development and Investment Company, targets high-income consumers and sells housing units starting at 1.3 million pounds.

The company, Egypt’s third-largest listed property developer, is targeting sales of 4 billion pounds this year, up from 3 billion in 2014. Demand for new housing remains strong and the sector has resilient despite political turmoil.

SODIC plans 2.3 billion Egyptian pounds worth of investments for 2015 and has already invested 1.8 million of that in the first nine months of the year and plans to invest 500 million in the fourth quarter, Managing Director Maged Sherif told a news conference.

The company’s land bank has reached 3.5 million square metres, he added. It owes the New Urban Communities Authority (NUCA), a government housing body, 2.7 billion pounds which it will pay back over six years.

Sherif said the company was considering buying land on the Red Sea coast in the first quarter of 2016, as well as more land on Egypt’s Mediterranean North Coast.

It started selling the first phase of its 100-feddan (42 hectare) North Coast project in the third quarter, he said. The project is set for completion in three years and contracts worth 560 million pounds have been signed for the first phase.

SODIC will start a new development project in the first half of 2016 on land it bought from the government, Sherif said. The company said in September it had won a NUCA auction for a 30.76 feddan piece of land worth 221 million pounds.

$1 = 7.8300 Egyptian pounds Writing by Ahmed Aboulenein; Editing by David Clarke and Susan Fenton

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