Madinet Masr boosts its construction investments with EGP 10 billion to accelerate progress on its flagship projects, Sarai and Taj City.

Madinet Masr (EGX code: MASR.CA), one of Egypt’s leading urban community developers, is accelerating the construction of its flagship projects, Sarai, the mixed-use project located near the New Administrative Capital, and Taj City in East Cairo. The company achieved significant progress, meeting the highest quality and sustainability standards. With capital expenditures of EGP 10 billion allocated to construction and infrastructure investments across its ongoing projects, Madinet Masr reaffirms its commitment to leveraging its strategic land portfolio. These efforts align with Egypt Vision 2030 for urban development, delivering exceptional value to customers while contributing to the nation's growth.

 

Madinet Masr has successfully executed its expansion strategy in 2024, launching five new phases in Sarai, spanning over 5.5 million square meters, and Taj City, covering 3.6 million square meters. The company aims to enhance these developments in East Cairo by developing non-residential areas across an area of up to 1,200 square meters within five years.

 

In Sarai, Madinet Masr launched “Sheya”, a project covering 228,212 square meters with sales worth EGP 5.3 billion, and “Esse Residence" project, spanning over 400,000 square meters, with anticipated sales of EGP 18.2 billion. The company also signed strategic partnerships with leading contracting and engineering firms to accelerate construction and development, including a deal with Aboelwafa for Contracting & Real Estate Investment worth over EGP 1 billion and another with Redcon Spain Construction valued at EGP 600 million. Additionally, the company signed a Memorandum of Understanding (MoU) with SCAD to execute constructions on “Croons” project within Sarai, amounting to EGP 650 million.

 

In its flagship project, Taj City, Madinet Masr has introduced "Tajed," its first integrated commercial district, spanning 39,000 square meters. Strategically accessible due to its location, Tajed aims to cater to a wide range of customers’ needs with diverse commercial offerings. Additionally, the company plans to construct a retail branch for Carrefour under a nine-year lease agreement with Majid Al Futtaim, which owns the exclusive rights to operate Carrefour in Egypt, with an estimated construction cost of EGP 500 million. Similarly, Madinet Masr has secured a nine-year lease agreement with B.TECH in “Tajed”, a leading consumer electronics retailer, expected to generate rental returns of EGP 250 million.

 

Strengthening its position as a leader in the real estate sector, Madinet Masr plans to launch a new finishing arm in January 2025 as part of its broader expansion strategy while increasing its focus on the growth in non-residential projects in the near future.

 

In 2024, Madinet Masr forged successful partnerships to advance its sustainability and education initiatives. The company signed a Memorandum of Understanding (MoU) with Elmarakby Steel to promote environmental sustainability and reduce carbon emissions. Additionally, it has partnered with Blue Ribbon and CIRA Education to establish Egypt's first Swiss international school, emphasizing sports development and its integration into education.

 

Commenting on the company's business growth, Eng. Abdallah Sallam, President and CEO of Madinet Masr, stated: "We take immense pride in the accomplishments we had achieved in 2024, which underscore our steadfast commitment to innovation, quality, and sustainable growth. Our focus remains on offering integrated real estate solutions that embody these values and cater to the needs of future generations. With a legacy of over 65 years, we have earned our customers' trust through our team's dedication and unwavering commitment to creating fully integrated urban communities that meet and exceed expectations of our customers." He further emphasized: "We are determined to accelerate the progress of our construction projects while strictly adhering to the announced delivery timelines. This aligns with our ambitious strategy to expand our land portfolio, diversify our projects, and continue contributing to the advancement of the Egyptian real estate sector."

 

Madinet Masr is committed to developing its distinguished land portfolio, which spans over 12.7 million square meters in strategic locations across Greater Cairo. The company focuses on developing modern residential and commercial projects tailored to meet customers' evolving needs while adhering to the highest efficiency and quality standards. Approximately 24.2% of the company's total land portfolio is allocated to new projects, and about 78.3% of the land area in Taj City is under development, while non-residential projects yet to be launched account for 21.7%. Similarly, 58.8% of the total area in Sarai is under development, with 26.5% designated to residential projects and 14.7% allocated to non-residential projects that are yet to be launched. Looking ahead, Madinet Masr plans to award construction and contracting projects worth up to EGP 20 billion in 2025, further underscoring its commitment to growth and development.

 

The remarkable expansion of Madinet Masr’s projects reflects its robust financial performance and substantial sales growth. Contracted sales more than doubled year-on-year, reaching EGP 32.7 billion in the third quarter of 2024, while the number of units sold increased by 58.5% year-on-year, totaling 4,097 units across various projects. Additionally, the company reported an 88.4% year-on-year increase in gross profit, amounting to EGP 5.4 billion during the first nine months of 2024. This growth was accompanied by a significant improvement in the gross profit margin, which rose to 75.1%, compared to 64.9% during the same period in the previous year.