Aldar Properties, the largest real estate company in Abu Dhabi, is negotiating to acquire the entire shares of Imkan Misr Real Estate Development Company, wholly owned by the Abu Dhabi Capital Group, after its business in Egypt faltered as a result of the fall of the pound in parallel with the high cost of construction, according to two people familiar with the file who spoke to East Economy.
Imkan was established in Egypt in 2017, and one of its largest projects is Al Burouj, east of Cairo, which is built on 5 million square meters, with investments amounting to 50 billion pounds.
One of the people familiar with the file told Iqtisad al-Sharq, on the condition that his name not be published due to the confidentiality of the negotiations, that Imkan Misr has incurred large losses in the recent period due to the liberalization of the exchange rate and the high cost of developing the project, in light of the company’s reliance on selling in installments over a period of 14 years, and an increase in The pace of sales with twice the pricing compared to the cost of execution. Noting that what Aldar Company is doing represents an attempt to save Imkan Company and recover it from losses by acquiring it.
Aldar Properties did not respond to a request from East Economy for comment.
The real estate sector represents about a fifth of the Egyptian GDP, and is witnessing steady growth, supported by an increase in the population of two million people annually, in addition to the movement of movement from the countryside to the cities at a rate of 2% annually.
With 6 billion pounds.. the Emirati Aldar Alliance seizes the Egyptian Sodic
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As a precaution against inflation, real estate agents in Egypt resort to pricing in dollars and selling in pounds
Some real estate companies in Egypt resorted to pricing in dollars as a tool to hedge against the risks of rising costs after the deterioration of the pound and the rise in inflation to record levels, while others went to cancel some customers’ reservations and return their checks to maintain profit margins, but it seems that Egypt’s potential is due to its large sales and long repayment period. Premiums have not been able to take any defensive measures that protect them from market fluctuations.