SODIC invested EGP 3 billion in projects during H1 2024
Sixth of October Development and Investment Company (SODIC) reported contract sales of EGP 10.93 billion for the first half of 2024، marking a 34% increase compared to the same period in 2023.
Sodic’s General Manager، Ayman Amer، reported sales growth despite limited project launches in Q1
The company achieved EGP 10.93 billion in contract sales in the year’s first half.
Sodic’s General Manager، Ayman Amer، noted that the company achieved this sales growth despite limited project launches and phases in the first quarter. He emphasised that the performance reflects SODIC’s commitment to balance، growth، and profitability.
Amer also highlighted positive developments for the year، particularly the company’s expansion into the hospitality sector.
Strong demand and reduced cancellations underscore the brand’s strength and the flexibility of the Egyptian market.
He pointed to strong demand for SODIC’s projects and a significant reduction in sales cancellations as key indicators of the company’s brand strength and the resilience of the Egyptian market.
Sales Performance
SODIC sold 361 units and delivered 478 units in the first six months of 2024
SODIC reported selling 361 units in the first half of 2024، contributing to total contract sales of EGP 10.93 billion—a 34% increase from EGP 8.17 billion in the corresponding period last year.
SODIC partnered with Marriott to introduce the Tribute Portfolio brand in two projects in West Cairo and the North Coast.
The rise in contract sales was driven by strong performance in SODIC’s primary markets:
West Cairo projects accounted for 58% of total contract sales، supported by robust demand for the 464 -Feddan project and The Estates، contributing approximately EGP 5.3 billion، or 49% of SODIC’s total sales.
West Cairo accounted for 58% of total sales، while the North Coast represented 36%.
North Coast projects contributed 36% of contract sales، with the June project alone accounting for 22% of the total.
East Cairo projects contributed 6% to total contract sales in H1 2024.
Sales cancellations during the period amounted to EGP 253 million، representing 2% of total contract sales، a significant improvement compared to a 10% cancellation rate in H1 2023.
Net cash collections for the period reached EGP 6 billion، with a delinquency rate of 6% compared to EGP 4 billion in net cash collections and a 5% delinquency rate in the same period last year.
Handover and Construction
SODIC handed over approximately 478 units in the first half of 2024، comprising 324 units in East Cairo projects and 154 units in West Cairo projects.
This marks an increase from the 402 units delivered in the same period last year.
Total capital expenditures for construction in the year’s first half reached EGP 3 billion، up from EGP 2 billion in the first half of 2023.
Revenue from operations grew by 35% to EGP 3.94 billion، compared to EGP 2.92 billion in the same period the previous year.
This increase was driven by deliveries in West Cairo projects، which accounted for 51% of the total value of deliveries، while East Cairo projects contributed 49% to the total value of deliveries for H1 2024.
Key Contracts in H1 2024
The company signed an agreement with Nobu to develop a hotel and restaurant in East Cairo.
SODIC and Nobu announced a new agreement to develop a hotel and restaurant in East Cairo.
This project marks the third collaboration between SODIC and Nobu in the Egyptian market، following last summer’s announcements of a hotel، restaurant، and hotel residences under the Nobu brand in West Cairo and the North Coast.
In June، SODIC signed a partnership agreement with Marriott International to introduce the Tribute Portfolio brand in two of SODIC’s projects، located in West Cairo and the North Coast.
Additionally، SODIC announced the launch of its latest retail project، Eastown District New Cairo (EDNC)، which is scheduled to open in September 2024.
