Investor Presentaiton
Revenue Stream 1: Land Sales
Industry-Beating Model
3.1 million m² (excluding Phase III and Sawari Marina) remain in the pipeline at Sahl Hasheesh. Average sales price grew at 89%
annually before the 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 @ USD 4.01 per m² to a
strategic investor
CAGR = 90%
Weighted Average Cost/m² (USD)
78
42
45
2004*
2005
2006
143
2007
2008
1,327
261
Land Area Sold (000 m²)
2,039
1,317
476
18.00
Uncapitalized
Infrastructure Cost
1.32
1.75
120
Cost of Land from TDA
Fixed Fee on Sale of
Land to TDA
Gross Profit
⚫ 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 amongst developers
hurting their returns and in turn hurting ERC's land plot prices.
Developer Payment Terms:
Down Payment: 20% - 30%
Installments: 5-8 equal semi-annual installments
• Cost of Infrastructure: Blended weighted average cost for all 3 phases.
• TDA Land Payments:
Phase I - Fully paid
Phase II - Fully paid
Phase III - EGP 197.7 mn outstanding, 3 years grace + 7 years payment
• Infrastructure Delivery Terms: 120 days prior to development
operations commencement.
23
Investor Presentation 2012
ERC
Egyptien Resorts CompanyView entire presentation