Investor Presentaiton
Revenue Stream 1: Land Sales
Industry-Beating Model
2.7 million m² (excluding Phase III) remain in the pipeline at Sahl Hasheesh. Average sales price grew at a CAGR of 90% before the global
financial crisis and profit margins reached 84%.
Weighted Average Sales Price/m² Achieved (USD)
•
2004 WAP was low due to a one-time promotional
1 million m² golf course sold at USD 4.01 per m² to
a strategic investor
In 2013 and 2014, we sold 67,000 m² to the
same strategic investor with favorable prices
CAGR = 24.3%
Weighted Average Cost/m² (USD)
78
151
143
120
109
90
90
22
42
22.95
45
40
40
1.32
1.75
11
2004
2005
LUUD
2007
ZUUO
2012
2013
2014
2015
Uncapitalized
Infrastructure Cost
Cost of Land from TDA
Fixed Fee on Sale of
Land to TDA
Gross Profit
1,327
261
2,039
476
Land Area Sold (000 m²)
1,317
4
20
101
555
⚫ ERC maintained long-term land bank residual value by controlling end-
consumer supply by not engaging new land plot sales in 2009 and 2010.
Excessive supply will result in price competition among developers
•
hurting their returns and in turn hurting ERC's land plot prices.
Developer Payment Terms:
Down Payment: 20% - 30%
Installments: 5 - 12 equal semi-annual installments
• Cost of Infrastructure: Blended weighted average cost for all 3 phases.
• TDA Land Payments:
Phase - Fully paid
Phase II Fully paid
-
Phase III EGP 310.1* mn outstanding (Long Term Liability), three years
grace + seven years payment
• Infrastructure Delivery Terms: 120 days prior to development
operations commencement.
*As of 31/3/2016
24
Investor Presentation Q2/1H 2016
ERC
Egyptian Resorts CompanyView entire presentation