CAIRO: SODIC, Egypt’s third-largest listed property group, reported a 37.4 percent rise in nine-month net profit yesterday on the back of strong sales as one of its property developments came on to the market.
The company said net contracted sales for the third quarter rose 34 percent from the same period last year.
“The strong sales came on the back of the launch of Eastown Residences Phase VII which fully sold out contributing 353m (Egyptian pounds) to year-to-date sales,” it said in a statement.
SODIC, also known as Sixth of October Development and Investment Co, said nine-month net profit rose to 109.71m Egyptian pounds ($15.34m) from 79.86m a year earlier.
Egypt’s once-booming construction sector was hit hard by the 2011 revolt that ended Hosni Mubarak’s 30-year rule as this also ushered in a period of economic and political volatility. Many large real estate contracts were cancelled in the wake of the revolt and investment dried up.
Three years on, the economy is showing the first signs of recovery, bringing an uptick in demand for property.
SODIC said earlier this month it had completed a 1bn pound capital increase to help finance new projects as the country’s real estate market begins to recover.
It said the fundraising had taken its issued capital to 1.35bn pounds from 362.71m pounds and raised shareholder equity by about 47 percent.
Reuters
