Press Release
Orascom Development Holding AG (ODH) Launches the first phase of Eco-Bos in Cornwall, UK
Altdorf, 4 November 2019 - Orascom Development Holding commences the development of its first project in Eco-Bos Developments Limited in Cornwall, UK after demonstrating its financial viability, identifying sources of finance and being awarded the necessary development permits.
ODH is planning to launch the first phase of the West Carclaze Garden Village (WCGV). WCGV is a mixed-use residential development principally targeting local, primary homebuyers. It includes a total of 1,500 -1,800 homes built around extensive green areas and lakes for recreation, a 420-place primary school, an office park, a "village center" with a mix of retail, F&B and community service buildings as well as a 7-megawatt solar energy farm. This first phase uses 196,604 m2 out of the total land bank under option of over 6.5 million m2.
The project has been designated a "Garden Village" as well as an "Eco-Town" by the UK Government and is under consideration for a "Healthy Town" designation by the National Health Service (NHS). These accolades are all related to initiatives supported by the UK government in the context of its long-term plan for providing mass housing to meet huge demand while promoting principals of affordability, sustainability and healthy living. Eco-Bos's success in achieving these designations for WCGV allows it to enjoy not only significant prestige and increased market visibility but also significant government support including some concessionary funding. This land bank allows Eco-Bos to plan the development of a multitude of projects over the next two decades strongly helping to achieve ODHs strategic objective to diversify into the relatively stable and attractive market for European first homes while having positive cash flows and consolidated profits from an early stage.
The highlights of this phase include:
- Total land area being developed is 196,604 sqm.
- Total number of residential units is 270 in the form of detached and attached homes as well as apartments.
Key development milestones for this phase include:
- Breaking ground in February 2020.
- Launching bulk sales in June 2020 and retail sales in February 2021.
- Delivering the phase by Third Quarter of 2024.
Key Financial highlights of this phase include:
- Total expected sales ca. £79mn (ca. CHF 101mn)*.
- Destination will be cash flow positive and profitable in 2022.
- Estimated cumulative losses before turning into profits, are within the range of ca. £1.0mn - £2.0mn (ca. CHF 1.3mn - CHF 2.6mn)* until 2022
A highly qualified executive team has been appointed to manage Eco-Bos. It is headed by Maher Maksoud who joined as CEO in November 2018. Maher has almost 30 years of Real Estate Development experience most relevantly 10 years as Vice President of ODH (then OPTD) during the company's very early days in the 90s and, more recently, 8 years as Vice Chairman and CEO of SODIC during which time he oversaw its transformation into one of Egypt's most respected and successful, publicly listed real estate companies. Since his appointment Maher has retained an efficiently sized but high qualified team of managers and executives combining international industry experience with local UK/Cornwall know how appropriate to the delivery of Eco-Bos's anticipated project pipeline.
* GBP/CHF rate used as of 3/11/2019.
About Eco-Bose Development Limited
Eco-Bos Development Limited is ODH's UK subsidiary in partnership with Imerys Minerals Limited which owns a 25% share in the company. Eco-Bos has options on a very attractively priced land bank of 6,610,000 m2.
About Imerys
Imerys is a world leader in industry mineral-based specialty solutions with EUR4.6 billion revenue and 18,000 employees in 2018. Imerys delivers high value-added, functional solutions to a great number of sectors, from processing industries to consumer goods.
About Orascom Development Holding (ODH):
Orascom Development Holding (ODH) is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates nine destinations; four in Egypt (El Gouna, Taba Heights, Fayoum and Makadi Heights), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.
Contact for Investors:
Sara El Gawahergy
Head of Investor Relations & Strategic Projects Management
Tel: +202 246 18961
Tel: +41 418 74 17 11
Mob: +41 79 156 78 49
Email:ir@orascomdh.com
Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: prb@dynamicsgroup.ch
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