Investor Presentation Q3 2016
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% from 2004 till the
global financial crisis and 25% till present
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 = 25%
160
151
السيلاب
118
109
40
143
42
45
2004*
2005
2006
2007
2008
2012
2013
2014
2015
2016
128
Weighted Average Cost/m² (USD)
29
Uncapitalized
Infrastructure Cost
1.32
Cost of Land from TDA
1.75
Fixed Fee on Sale of Land
to TDA
|
Gross Profit
1,327
261
2,039
1,317
Land Area Sold (000 m²)
476
4
20
101
457
21
• ERC maintained long-term land bank residual value by controlling end-
consumer supply by not engaging new land plot sales in 2009, 2010, and
2011. Also, ERC engaged in minor sales in 2012 and 2013. 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
• 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 30/9/2016
24 Investor Presentation Q3 2016
ERC
Egyptian Resorts CompanyView entire presentation