Egyptian Resorts plans Sawari launch in Q2 2012

Developer Egyptian Resorts (ERC) (EGTS.CA) plans to launch its delayed Sawari project in the second quarter of 2012, the firm's chief executive officer said on Wednesday.

ERC, taking a hit from political turmoil after President Hosni Mubarak was ousted, is optimistic that the country's economy will rebound in the long term, even if it expects volatility throughout 2012, Mohamed Kamel said.

The firm is in a partnership to develop land with Orascom Development Holding (ODH) (ODHN.S), for the Sawari project, a mixed-use development that will include a marina on a 2.5 million square meter plot at Sahl Hasheesh on the Red Sea.

It expects to generate sales of 2.2 billion Egyptian pounds ($369 million) from the first phase of the project.

"Our Sawari project is on the top of our priorities and we will invest most of our time, effort and resources into it for next year. Our firm's liquidity allows us to start that," Kamel told the Reuters Middle East Investment Summit in Cairo.

The firm had previously said it would start construction in the fourth quarter of this year. Kamel said he anticipated an investment cost of 1.7 billion pounds.

"The licensing process has been slower than usual, which was expected but we remain on schedule for construction and we are targeting a Q2 2012 start," Kamel added.

"We have not met our sales targets for 2011 but believe in the Sawari project's superior offering that will result in a recovery earlier than the market's performance," he added.