Morshedy Group: Urban development with an Egyptian signature and a Greek soul
By Tasos Zachos
Entering the Morshedy Group offices in Athens, in the visitor reception area, you are immediately won over by the architectural aesthetics and the view of the Athenian Riviera. And it couldn’t be any different, as Morshedy Group is considered one of the largest real estate development groups, with a valuation that currently reaches 6.5 billion euros, with more than 100,000 customers internationally and with 19 MEGA projects such as Skyline, which holds the title of the largest residential building in the world with 13,000 apartments, according to Guinness World Records. In total, they have delivered over 50,000 residential units and are expected to deliver over 40,000 residential units in the next 7 years. They essentially build cities.
It all started in the early 1980s in Egypt by Mohamed Al Morshedy, who had one main goal: He started selling very luxurious premium projects in the most premium locations and, then, went on to create affordable, world-class residential solutions, without compromising on quality or aesthetics, to capture a way larger market. In 2012, looking for opportunities to expand their portfolio, his family landed in Greece, founded Morshedy Group International, based in Alimos, and both Mohamed Morshedy and his son Mahmoud, who is at the helm of the family business, fell in love with our country.
As Mahmoud Morshedy, whom I had the pleasure of meeting at the group’s headquarters in Athens, tells me, he recently discovered that his family has Greek roots in Crete and Kavala, a fact that further strengthens their bond with our country. He is joined in the following interview by his cousin Hasan Sidky, with significant experience of 14 years as chairman of the board of directors of Morshedy Group and participation in 17 mega projects, including Skyline.
Both speak enthusiastically about the history and culture of Greece, the great opportunities they have identified in the Greek market, the dynamics of Greek hospitality and the Athenian Riviera, but also about the improvements needed to attract more investment as a country. They also describe the group’s vision for our country, which focuses on both extreme high-end luxurious and affordable housing in the future.
Morshedy Group, one of the largest real estate development groups, made its strategic entry in Greece in 2012. What led you from Cairo to the Athenian Riviera?
M.M.: In 2012, we researched many countries in Europe, such as Spain and the United Kingdom, as we wanted to develop our portfolio. Fortunately, we chose Greece as, as soon as we landed, we immediately fell in love with its culture, civilization and great history, which everyone admires. In addition, Attica has one of the best coastlines in all of Europe, while in Greece the hospitality industry is very strong, as there are over 227 inhabited islands. Back then, as you know, the country was plagued by an unprecedented debt crisis; however, we saw the significant opportunities and decided to invest. We also discovered that we are partly Greek! On my mother’s side we come originally from Crete and on the side of my father -Mohamed Al Morshedy, the founder of the group- we have roots from Kavala. As you know, Egyptian and Greek history have been intertwined for centuries, and this is one of the things that made us feel literally at home.
How easy was it for you to adapt to the Greek market and the regulations of the European Union?
M.M.: To adapt to the Greek market, as in any new market, requires a lot of patience. So, when we started our activity, this was a challenge and a weakness but we always focus on turning our challenges and weaknesses into our strongest strength and opportunities. And we managed to do this by creating an in-house local Greek team in Athens with engineers and executives and we collaborate with top tier architects, designers, sub-contractors and brokers in Greece and internationally. At the same time, we try to delve into the details, we know the regulations and all the laws, and this is a huge advantage.
H.S.: Our Greek associates have the local expertise. We fully utilize their skills and knowledge, and we benefit from it and combine it with our experience. There is also an exchange of ideas and opinions, as at Morshedy Group we have a significant background in developing real estate from scratch in large cities. We developed entire cities; one of our fully delivered projects, Degla Palms, has 35,000 units, a complex that includes everything that an entire city actually has, with 20 shopping malls, 10 schools, places of worship, commercial spaces, administrative spaces and a huge sports club. It is a work-live-play model. We build the entire city from scratch, from design to sale and delivery of the units.
As one of the first major investors from the Middle East in the Greek real estate sector, the company has developed a dynamic portfolio. What does it include and which projects are in progress?
M.M.: We started by buying various assets all over Athens, from smaller properties in areas like Psychiko to some of the largerst units in the Southern Suburbs. We wanted to diversify and so we expanded everywhere around Athens, and we also bought different types of properties, such as residential and commercial properties, but also hospitality properties and hotels. At the beginning our goal was mainly to buy and sell, but now we are focusing on developments with new high-end/ top-tier real estate developments in the best locations in the Athenian riviera and we focus on creating the most luxurious homes. We always manage to create premium living experience for our clients; for instance, most of our projects are designed to have private built-in swimming pools for each home in their balconies, we add underfloor heating for their comfort, we focus on creating high-level energy buildings because sustainability is one of our core values, we have one full basement just for parking and, last but not least, we stand out for creating some of the nicest basements for the maisonettes by managing to bring a lot of sunlight inside them. Besides, we love Greece, we now live in the country and real estate is in our “blood”, as we have been successfully developing in the sector for the last 45 years. So, we are buying more plots for development, wishing to bring our best product to the market. We make sure to add all the 45 years of experience into the building we develop and focus on each and every detail.
So, have you developed real estate in Athens?
M.M.: The company has developed a dynamic portfolio, strengthening its presence through high-end residential projects. Currently, up to ten projects are “running” in the Southern Suburbs under the Morshedy umbrella, while at the same time our company owns dozens of properties in key locations in Athens, such as Ekali, Palaio Faliro, Agia Paraskevi, Psychiko and other areas, where it designs upgraded residential projects. We try to bring innovation to all our projects with our Greek associates, utilizing the expertise of partners from abroad and combining the Greek market with international ones. We want to create something unique.
How do you see the future of the Athenian Riviera, given the large investments in the Southern Suburbs and the regeneration of Ellinikon?
M.M.: We believe that the Athenian Riviera will be one of the largest rivieras in the world, thanks to all the investments that are being made and to its natural beauty. The investment in Ellinikon, of course, is a game changer, since it is not just a redevelopment, but the largest project in Europe, in which a lot of people will want to invest and live in. When it is completed, it will upgrade Greece’s position worldwide and will be an international landmark. Let us not forget that Greece has already taken significant steps in this direction and a lot has changed since we started our activity here in 2012.
H.S.: The Athenian Riviera is the future of European development. It meets all the basic requirements of an ongoing success story: from the wonderful weather, the great culture, the food, the lifestyle, to the relatively low price level compared to other places and rivieras in Europe. So, the potential for development is ripe. This is the right time for Greece, which has taken off, attracting domestic and international investors. Of course, there are some obstacles in our path, with changes in regulations that are eroding some of the confidence of developers and foreign investors. I think that this can be sorted out and smoothed out, as a stable and long-term regulatory framework is needed.
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What is needed to attract high value-added investments and what can we improve in Greece?
H.S.: What is needed includes better roads, strengthening of the infrastructure, better facilities and better services. All of this is already happening, and the difference from 2012 is notable. Of course, we can move at a faster pace and reduce bureaucracy, but I believe that things are going in the right direction. A proof of that is the dynamic course of tourism in Greece, but also investments in the real estate sector. The momentum is there and we must not lose it. I would also like to add that Greece has an amazing architectural history, which is studied all over the world. We want to put this back on the map and we hope that the developments that are coming will be landmarks for the region and the rest of the world.
Skyline is the largest residential building in the world and showcases your bold approach to architecture. What are the new standards for developing modern urban communities?
M.M.: Morshedy Group is now one of the largest real estate development groups in the Middle East, with a portfolio of over 100,000 clients, 40,000 residential properties, 25 shopping malls, 11 schools and 2 hospitals. Since education is also a necessity for the youth, we also recently launched a university with 10 colleges with up to 14.000 students. It also develops new projects at a rate of over 3,500 units per year, demonstrating its broader contribution to the field of urban infrastructure development. Skyline is a 200,000 square meter flagship project, with a total area of 1.2 million square meters, with more than 13,000 apartments and 700 shops in one building. It’s like building a city from scratch in one building, an investment of over $550 million, designed to accommodate over 30,000 residents.
H.S.: We have literally designed a city in one building. We have 13,000 units in one building with families, which includes facilities such as swimming pools, cinemas, restaurants, gyms, commercial spaces, and even a rooftop park. Apart from Skyline, in all the major projects we “run” we focus on creating retail, commercial and administrative spaces, so that every time a client invests they are not just buying a house but also services concentrated around their home. It is in our DNA to build communities, and Skyline, which holds the title of the largest residential building in the world, according to Guinness World Records, is part of the work-live-play model that we promote as a group. Transportation, nowadays, is a huge challenge for a lot of people. So when you have everything close to you, it makes things easier. And that was not easy, as regulations had to be put in place, as the Egyptian authorities have never seen a building of this size before. We are working very closely with them to create a city in a building.
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It is, indeed, impressive.
H.S.: It is extremely impressive. We have one of the strongest teams in the world working on projects both internationally and locally. I would say that one of the things that we want to do in Greece is to create some of these communities, when there is a demand. The same style on a smaller scale obviously. But the idea is the same – a community that has everything accessible to ease road traffic and make it easier for people to get to and from work, saving time and fuel, so that we reduce the environmental footprint. Sustainability is the “key” for us.
One of the things I would like to add about Skyline is that when we looked at all the different historical developments in the world, we realized that the Egyptian pyramids, obviously, are the most iconic symbol of Egypt. They were the largest human-made structure in the world for over 3,500 years, built by Egyptians. When we were thinking about Skyline, we were asking ourselves: How can we bring that title back to Egypt? And that’s when we decided to do this project.
Morshedy Group emerged during a period of intense urban transformation in Egypt in the 1980s. What was your vision and your goal and, today, what are the values that make you stand out in a highly competitive industry?
M.M.: My father’s vision when he started was simple but profound: He started selling very luxurious premium projects in the most premium locations and then had a vision of creating affordable, world-class housing solutions, without compromising on quality or aesthetics. When we started in the Egyptian market in the 1980s, we focused on luxury living. We quickly realized that in this market the need was mainly for affordable housing, but without losing the elements of well living. That is exactly what we set out to do in reality. I would say that we were in a way the “Zara of real estate”. We see what the people need and we achieve it. In all our buildings, what we focus on is to have very good and affordable prices, but with buildings that look and feel amazing. We always try to be innovative and creative, to offer the customer everything that they need in a complex.
H.S.: Mahmoud is talking specifically about the Egyptian market, with a population of 110 million people and a daily demand for housing. There is a shortage of real estate, of new developments in the market in relation to this high demand. We have about two million new Egyptians born every year, the population is constantly growing and all these people need a home, with the value for money model.
How do you plan to expand your activities in Europe?
M.M.: We are always looking at opportunities and trying to exploit them. Right now we are focused on Egypt and Greece, but we are also looking at other opportunities abroad. We are also looking across Europe to see whether there is something that we can get involved in. We have a big vision: to make Morshedy Group the largest not only in the Middle East, but also in Europe and, hopefully, internationally, because real estate is in our blood and that is what we want to do. We are a global business, with more than 100,000 international clients. In Egypt, specifically, we have almost 15,000 international investors who come and buy from our projects. This is how the group stands out worldwide.
So, closing our discussion, I would like to ask you how you feel about Greece and what your main concern for the Greek market is.
M.M.: Honestly, I think that Greece is one of the most beautiful countries, if not the most beautiful country in the whole world. Let’s hope that the country will really utilize its great human potential and continue to make steps forward. Our construction vision for Greece is to have the most luxurious new developments in the Athenian riviera. Moreover, while being in Greece for the last 13 years, we noticed shortage and a high demand for affordable housing to serve the local community and since we have one of the best track records in the world for providing affordable housing for the local market, we would love to help creating this concept here in Athens by aligning with the government initiatives. This concept could come to the legal requirements asked by the government and could involve huge compounds that would have all the amenities anyone would need around them such as schools, sport clubs, and entertainment areas. We would love to apply this concept here too.
