Egypt, new dimensions, new frontiers

Mr. Hisham Talaat Mostafa, CEO & Managing Director of TMG

Interview with Mr. Hisham Talaat Mostafa,
CEO & Managing Director
Read our exclusive interview
Alexandria Company for Real Estate Investment a member of

Egypt -

"Creating a better Egypt"
Mr. Hisham Talaat Mostafa ,
CEO & Managing Director
Alexandria Real Estate Investment Co.
Main Office:
El-Madina El-Tebbis
Tel: (203) 546 50 02
Fax: (203) 546 13 48
Marketing & Sales Head Office:
36, Mossadak street, Dokki,
Tel: (202) 336 21 91
Fax: (202) 336 21 97
Company Profile

Alexandria Company for Real Estate Investment (AREI), a member of Talaat Mostafa Group (TMG), was among the first Egyptian Companies to recognize the beginning of a new dynamic modern economy era in Egypt following the economic reform program. It was established in 1987 with an authorized and paid-in capital of LE 50 million, which was increased in 1997 to LE 100 million and further raised to 130 million.

The company is 37.6% owned by Engineer Talaat Mostafa and his family, while the remaining stake is owned by a group of distinguished Arab and Egyptian investors. In addition, that last capital increase has attracted renowned international banks and asset management funds as new shareholders.

AREI is listed in Cairo Stock Exchange.

AREI is ranked among the market leaders who pioneered the property development industry since its very beginning in Egypt. Accordingly, its strategy is to provide a high quality product to establish significant presence in the market and to protect its on-going concern.

Being a Group member, AREI is associated with the name of Egypt's leading construction and contracting firm, Alexandria Company for Construction, established by Engineer Talaat Mostafa in 1981 to form the nucleus of the Group of joint stock companies.

AREI presently spearheads the Group's property development and touristic projects.

AREI's strategy

AREI's strategy is to develop its technical and market knowledge to support the development of new concepts in real estate development, thus constantly increasing its market penetration and ability to generate new market demand while diversifying its activities and investments to reduce its vulnerability to particular sectors or developments and ensure a steady flow of income.

AREI has succeeded in diversifying its activities and investments in line with the management strategy. Over time the market knowledge it has acquired through researching supply and demand for various development projects, and the expertise it has gained in structuring projects and developing financing schemes for them, as well as supervising their implementation, have enabled it to provide its marketing and project management services to other members of the Talaat Mostafa Group.

AREI places a particular emphasis on the selection and training of its technical and managerial staff, and the continuing development of its human resources. To maintain its edge AREI places an emphasis on its development and research budget and capabilities and provide in-house and custom-tailored programs for upgrading the sales and marketing skills of its staff.

AREI has orchestrated a growing team of more than 2,000 employees using modern management techniques, guided by his insight, vision and long-term planning capabilities. His financial expertise is evident as one of the distinguished feature of AREI's marketing approach, striking a balance between offering attractive payment terms and the efficient financial management of the company.

AREI's projects

Each of AREI's projects is based on a new concept:

  • Al-Rawda Al-Khadra: An integrated compound with greenery overlooking the sea.

  • Al-Rabwa: A luxurious and exclusive compound with full amenities.

  • May Fair: A high-class residential community easily accessible from Cairo

  • Virginia Beach: A well-designed and structured seaside resort

  • Nile Plaza: A deluxe hotel with executive, banqueting and commercial facilities

  • Al-Rehab: A modern, self-sufficient and well-planned suburb

  • Four Seasons Sharm El-Sheikh: A high-end hotel and residential seaside complex

  • Marsa Alam Resort: A mega-size tourist and residential resort on the Red Sea

  • With the increase in the number of projects undertaken, the Group's management opted for establishing separate companies to undertake various development projects with AREI being a common denominator in all of them. AREI's investments whose nominal value amounts to LE 198.6 million include:

  • 46.5% stake in Nova Park Cairo incorporated to implement the Nile Plaza project.

  • 10% stake in the Arab Company for Urban Projects which include the May Fair community and the Marsa Alam development.

  • Through its part ownership of AUP, AREI holds:

  • 16% stake in Alexandria and Saudi Company for Tourism Projects, which was established in 1997 with a paid-in capital of LE 40 million to develop the Four Seasons Sharm project.

  • A review of the list of projects in which AREI is involved reveals their geographical diversification in various parts of Egypt with an appropriate mixture of residential, recreational, commercial and tourist projects as well as in project components.

    To ensure the highest quality standards, AREI seeks the support of associates and consultants including a number of international and local industry leaders such as Bechtel, Shaker Consultancy Group and Hill-Glazier.

    A record of firsts

  • The first real estate development company to develop a compound near Alexandria at Al-Rawda Al-Khadra.

  • The first developer to execute an environment-friendly artificial lake in one of its resorts, supplied with water from a renewable source at Virginia Beach.

  • The first private sector company to develop a complete suburb at Al-Rehab.

  • The first real estate development company to introduce professional management, security, and fire alarm, and central satellite systems in its project.

  • The first real estate development company with a marketing network within Cairo, Alexandria and Arab countries, also using the networks of bank branches for marketing its projects.

  • The first property developer to develop alternative financing schemes offering long-term financing options to buyers.

  • The first estate development company to involve three major banks with equity participations in a joint venture to develop Al-Rehab.

  • Key Developments

    The emphasis of AREI's development over the next period will be on:

  • Expanding the company's network of marketing and sales offices outside the two main cities of Cairo and Alexandria, improving the company's outreach within Egypt by moving closer to potential customers in densely populated governorates.

  • Enhancing the company's sales and marketing capabilities in the region in countries with sizeable Egyptian expatriate communities.

  • Further developing its project management capabilities to meet the requirements of the new projects and expansions.

  • Another important project based on a new concept is the development of modern housing compounds with villas, flats and facilities for upper and upper middle income groups is presently under study with market research indicating high demand and excellent prospects.
  • Adding to its list of successful projects, AREI's projects in the next phase include:

  • Nile Plaza

  • Marsa Alam Resort

  • Al-Rehab extension (A prospective expansion larger than the project currently under construction)

  • The company's net worth of LE 123 million in 1997 is projected to rise dramatically to LE 218 million at the end of 1998 and continue rising to LE 274 million in 2002.

    The company's revenues are projected to leap from LE 42.2 million in 1997 to LE 120.7 million in 1998, rising steadily to LE 180.1 million in 2002.

    Net profit after tax, which amounted to LE 18.2 million in 1997 is projected to reach LE 38.8 million in 1998 and increase steadily to LE 85.5 million in 2002.

    The company's return on sales is projected to rise from 32% in 1998 to over 40% over the next five years.

    The company's return on equity is projected to rise regularly from 15% in 1998 to 31% in 2002.

    Talaat Mostafa Group

    36, Mossadak street, Dokki 115, Omar Ibn El-Khatab street,
    Giza - CAIRO, EGYPT Heliopolis - CAIRO, EGYPT
    Tel: (202) 331 56 00
            (202) 331 20 00
    (202) 416 18 00
    Fax: (202) 336 21 98
    Fax: (202) 419 69 26

    388, El-Gueish street,

    Company Profile

    Talaat Motafa Group (TMG) is made of 21 companies and it is operating in the following fields:

  • Real Estate and Tourism

  • Contracting and Building Materials Manufacturing

  • Agriculture and Agricultural Products

  • General investments

  • Agregate Paid-in capital of the Group is around 1.2 billion LE and the Group's Paid in capital includes 51% investments by TMG and 49% by other Arab and international investors.

    Total group's turnover is 8;2 billion LE in 1998 and total investment costs of the Group's projects is approximately 5.5 billion LE.

    TMG has more than 10,000 employees

    Talaat Mostafa Group

    Real Estate and Tourism

  • Alexandria Real Estate Investment Co.

  • Alexandria & Saudi Tourism Projects Co.

  • Arab Projects & Urban Development Co.

  • Alexandria Urban Projects Co.

  • Nova Park Cairo Co.

  • San Stefano Real Estate Investment Co.

  • Beau Rivage Real Estate Development Co.

  • International Co. For Reconstruction

  • Contracting and Building Materials manufacturing

  • Alexandria Construction Co.

  • Alexandria Glass & Wood Manufacturing Co.

  • Alexandria Co. for Tunnels

  • Alexandria Petro for Construction & Road Paving

  • Alexandria Electromechanical Works

  • Alexandria interior (Alex-Interior)

  • Alexandria. Co. for Engineering & Architecture Consultancy

  • G. Tech. for Electrical & Mechanical Works

  • Alex. for Potable Water & Sanitary Drainage

  • Fire Lab Egypt

  • Agriculture and Agricultural products

    Alexandria Agriculture Co.
    Alexandria Agricultural Industries Co.
    Al-Basateen for landscaping and Garden Maintenance

    General Investments

  • Egypt Cables Co.

  • Egyptian Medical Insurance Co.

  • Mediterranean Investment Co.

  • Egyptian Investment and Finance Co.

  • MIBank

  • Medical City Hospital

  • Land and Property

  • The Group's projects

    The Real Estate and Contracting projects are designed to satisfy all society class demand in terms of housing compounds ranging from low cost units to luxurious villas and spacious apartments with modern designs.

    The Group's largest and most prominent project, EL-Rehab City, is situated in the "New Cairo" district. El-Rehab is being developed as an integrated city with a total land area of 6 million square meters. The project consist of 40.000 housing units and is intended to attract more than 150.000 residents.

    The "Nova Park Cairo Complex" and the "San Stefano Complex" are considered the largest tourist project undertaken by the Group with an aggregate investment cost of 3 billion Egyptian Pounds.

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    © World INvestment NEws, 2000.
    This is the electronic edition of the special country report on Egypt published in Forbes Global Magazine.
    August 7th 2000 Issue.
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