UAE's Aldar Properties to hold off further Egypt investments for now | Reuters
Aldar Properties (ALDAR.AD) will hold off any further investments in Egypt until conditions there stabilise, a senior executive said, as the Abu Dhabi real estate developer reported a 22% jump in first quarter profit on Wednesday.
Aldar, along with Abu Dhabi fund ADQ, acquired about 85.5% of The Sixth of October for Development and Investment (SODIC) (OCDI.CA) shares in 2021 for 6.1 billion Egyptian pounds ($198 million), which at the time was worth about $387 million.
The investment in SODIC was to serve as a platform to expand the company's real estate portfolio in Egypt.
On Tuesday, SODIC reported a 17% decline in net profit in the first quarter from the same period in 2022, and said it had cancelled 21% of gross contracted sales in the quarter.
"We are taking a very cautious approach to launching projects," Faisal Falaknaz, Aldar's acting chief finance and sustainability officer, said in a media call.
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