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
Weighted Average Cost/m² (USD)
•
In 2013 and 2014, we sold 67,000 m² to the
same strategic investor with favorable prices
22
42
78
45
2004*
2005
2006
2007
1,327
261
2,039
151
143
2008
40
CAGR 26%
116
109
2012
2013
2014
2015
4
20
101
641
Land Area Sold (000 m²)
1,317
476
⚫ 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
22.95
Uncapitalized
Infrastructure Cost
90
00
1.32
1.75
Cost of Land from TDA
Fixed Fee on Sale of
Land to TDA
Gross Profit
• Cost of Infrastructure: Blended weighted average cost for all 3 phases.
• TDA Land Payments:
Phase - Fully paid
Phase II Fully paid
Phase III - EGP 273* mn outstanding (Long Term Liability), three years
grace + seven years payment
• Infrastructure Delivery Terms: 120 days prior to development
operations commencement.
*As of 30/9/2015
24 Investor Presentation 3Q 2015
ERC
Egyptian Flasorts CompanyView entire presentation