Inertia focused on increasing project delivery and implementation rates in 2022: CEO El-Adawy
Ahmed El-Adawy, CEO of Inertia Egypt, a property developer, said the company is focused on increasing its project implementation and delivery rates as it plans to increase the number of 1,600 units delivered this year.
He added that the “Jefaira” project represents the largest volume of deliveries in the last quarter of 2022. As the company’s main project on the north coast, covering an area of 5.8 million square meters, Jefaira includes separate villas with sea view. , semi-detached houses, townhouses, villas, chalets, apartments and studios. The built-up area of the project is 20%, and the rest is open parks and facilities for customers.
He pointed out that the company launched the project’s beach opening trial this summer. The beach will be fully operational next summer, with around 600 units delivered this year. He explained that the North Shore is on track to full year-round operation as planned by the state, which will be phased in.
He explained that a new phase has been started in the Jefaira project, called “Ayla”. It comprises 790 units overlooking a lagoon and swimming lakes, covering an area of up to 40,000 square meters, which guarantees a wonderful and distinctive summer experience for guests.
The company’s total project portfolio includes eight projects, including four residential and commercial projects in Cairo and the Red Sea. These have been completed and delivered. Four other projects are currently in progress. He said the company’s portfolio has great diversity in terms of businesses and locations, which meets the needs of the company’s existing and target customers.
He explained that the company has completed the delivery of the “Soleya” project in western Cairo. It is an integrated residential project, located in an area of 19 feddan, and includes apartments, townhouses, twin houses and separate villas, with a total of 172 units, and the built-up area does not represent only 22% of the total project. Region.
He added that the first and second phases of the “Joulz” project were delivered with a total of 530 units. It is an integrated residential project located on the desert road from Cairo to Alexandria, and the third and fourth phases of the project are being implemented. It comprises 1,152 units, including townhouses, twin houses and separate villas of various sizes, and the company has started delivering the units for this project.
The G-Cribs Phase I & II project in El Gouna, an integrated residential project in the Red Sea, is built on an area of 42,000 square meters, and the project consists of 330 units of various spaces, including studios. The project offers its residents the opportunity to live a life full of simplicity and luxury.
He pointed out that the company will start delivering units for the “Brix” project next year. It is an integrated residential project that includes 194 units and is located on an area of 44,000 square meters. The construction rate is 25%, and it includes different units with various spaces, from 82 to 275 m².
He explained that the company has successfully delivered the “Veranda” project in the Sahl Hasheesh region, which is an integrated project that includes 183 units. He also completed the implementation of Medipoint, Sheikh Zayed. It is a commercial medical project that includes 29 clinics in an area of 3,000 square meters in Sheikh Zayed.
The company has also completed the implementation of the West Hills project, which is an integrated residential project that includes 98 units, and is located on an area of 32,000 square meters, and includes various units between apartments and duplexes.
He pointed out that the construction cost of the projects had increased by 18 to 24% due to the high prices of raw materials, the shortage of some of them, the high price of the dollar against the pound and the dependence against hard currencies. to import raw materials from abroad, which affected the cost of implementation.
He explained that the company has a total customer base of 4,000 clients in its various projects. All of their needs are catered for in the company’s projects that have been delivered and hosted.
He added that the company has various service providers in its projects, including security, maintenance, cleanliness and agriculture, so there is a specialized department to meet all customer needs within the framework. of the project. The company will also launch another company specializing in the management of its projects in order to maintain its value and the quality of its investments.
He underlined the importance of the management component in maintaining the investment value of the company’s projects, as well as in preserving the investments of the clients in their units of the company, which supports the orientation future of the company to launch a specialized management company responsible for its projects in their entirety. , in particular Jefaira – the company’s largest project.
Ambitious investment plan
He said the company has a solid investment plan to meet its implementation and delivery targets. The total value of the contracts is EGP 2 billion, to be implemented within 18 months of signing, including a contract with Redcon, as the company focuses on increasing the percentage of deliveries in its projects.
He pointed out that the company focuses on sustainability elements in its projects to conserve resources in general, as well as to rationalize customers’ energy consumption and make their lives easier.
He stressed that the availability of services in the company’s projects is an essential element. The “Jefaira” project on the North Coast will initially operate its services for six months. On the other hand, the hospital will operate year-round to serve clients living in areas inside and outside the project. He noted that the availability of services is key to making the North Coast a vibrant area all year round, not just summer.
Inertia CEO said that the company has signed a memorandum of cooperation with Banque Misr, to obtain medium-term Islamic financing of EGP 1.1 billion, and allocate the loan to the Jefaira project with payment facilities for eight and a half years. In addition, a financing contract was signed for an amount of EGP 575 million with Banque du Caire, intended for the first phase of the project, which has been fully paid. About 50% of this loan has been repaid.
He stressed that the company is open to all investment systems and willing to consider all offers that are in the best interest of the company.
Price Change Review
He noted that the company does not add all of the increase in the cost of implementation to the selling price, because it bears part of that increase. The increase that the company adds to the sale price of its projects is between 10 and 15% only.
He added that the company constantly reviews economic variables and their impact on the cost of implementation and selling prices, with the aim of achieving a balance between the selling price and the cost of implementation and d ‘avoid any discrepancy between them, in addition to quickly making marketing decisions related to the number of units to sell or to stop selling in certain projects. This guarantees a high quality of the implemented projects.
He noted that the correct pricing and selection of sales schedules and payment systems available to customers are essential elements for the success of any project. The success of these projects means the success of the company as a whole, especially in terms of implementing the projects and delivering them to customers without any risk. This is especially important during this phase when the world is experiencing rapid global changes in all economic sectors.
Cityscape Egypt 2022
He pointed out that Cityscape Egypt is one of the real estate events the company wants to attend, in order to communicate directly with clients and present the company’s latest developments and updates to the market. During the exhibition, Inertia will launch the units of its Ayla project.
He pointed out that the company offers competitive prices and special offers during the expo, and the company is aiming for contract sales of EGP 500 million during the expo activities.
He explained that the external marketing rate in the company’s projects reaches 13%, which includes Egyptian clients working abroad and non-Egyptian clients, and this percentage was achieved through external marketing.
As for the beginnings of Inertia, the company started with just two employees. Today, it has more than 400 direct employees. He also started without any resources, whether cash or land, in 2007. However, thanks to his continuous work to form a model of successful entrepreneurship, he now has a land portfolio of 7 million square meters. , of which 1.8 million square meters are currently under development.
He pointed out that the nature of the real estate market necessitates access to land and finance, noting that land value accounts for the lion’s share of the cost of any project. He added that the company has succeeded through its distinguished business model in obtaining and developing land under various systems, which has led to the success of this experiment and its repetition in many mega-projects.