Cairo – Mubasher: Sixth of October Development & Investment Company (SODIC) on Monday received a land plot in Sheikh Zayed, which it previously said would use for an expansion scheme.
Allocated by the New Urban Communities Authority (NUCA), the plot covers a total area of 500 acres.
The Sheikh Zayed plot will house over 5,000 units with expected sales of around EGP 43 billion in the next eight years, SODIC said in a statement to the Egyptian Exchange (EGX).
With the addition of this new plot, SODIC’s undeveloped land rises to roughly 8 million square metres.
“NUCA is entitled to total payments of EGP 14.2 billion over 11 years of which EGP 8.5 billion are fixed installments, in addition to 15% of the annual collections. The projected payments imply a land cost per sqm of EGP 2,300 on a net present value basis discounted at 16%,” SODIC stated.
It is worth noting that the new project is located in the Sheikh Zayed Extension area and is only 10 minutes away from SODIC West, the company’s mixed-use community in west Cairo.
SODIC’s stock last traded 6.16% higher on the EGX, reaching EGP 22.07 on Monday.
