IC Group’s Ahmed Sherif explains why his firm chose to partner with Regus on developing two new flexible workspaces in Egypt’s New Administrative Capital.
Ahmed Sherif has been developing real estate in Egypt for 25 years with his company IC Group, creating more than 1.7 million square metres of prime property – both residential and commercial – across the country.
Now, in a year that’s seen the rise of hybrid working push the need for flexspace to the top of many company agendas, Sherif is partnering with Regus parent company IWG to open two new centres in the booming North African nation, the first of which is called ‘the office’.
Bringing flexible workspace to the New Administrative Capital
The franchise agreement, which was signed in June 2021, will see the creation of a pair of flexible workspaces in the business district of Egypt’s New Administrative Capital (NAC). Both of the new centres will span more than 4,500sqm and boast 220 offices, a selection of meeting rooms, a coffee bar and a 500sqm lounge.
The new capital city that’s taking shape in the desert east of Cairo is as yet unnamed, but will become the administrative and financial capital of the country, equipped with the smartest possible technology. Removed from the hustle and bustle of the old capital, the city will feature control centres that monitor infrastructure and security electronically. Roofs will be covered in solar panels, payments will be cashless and 15sqm of green space is allocated per inhabitant, according to officials. The finished city is expected to house at least six million residents and will boast universities, leisure facilities and a diplomatic quarter.
“The NAC is a prime location and it’s going to be one of the biggest business centres in the Middle East,” Sherif explains. “It’s 45km from the centre of Cairo, and all the government buildings and departments have been moved there. There’ll be residences, too. It’s going to be a very booming city.”
Moreover, Sherif argues, “It’s going to be a new hub for businesses from around the world and will be a tax-free area. It’s going to grow very fast. The location is an opportunity for property investors from all over the region.”
The appeal of IWG
Sherif’s first centre, which is currently under construction, will open in January 2023, and he’s already excited about the opportunity it represents.
Franchise coworking spaces in particular offer multiple revenue streams, he says, and he believes the New Administrative Capital is a great business opportunity to generate an excellent return on investment.
Sherif was already very familiar with the IWG brand, having been a regular client of the company for many years. He has used IWG’s flexible workspaces in locations around the world – and IC Group’s head office, in Florida, USA, is actually based in a Regus centre.
“IWG is a huge international entity that has achieved much success over the past 30 years, and that’s why we chose it,” he says. Sherif adds that IWG already has several centres in Egypt that are well occupied, so the demand for more state-of-the-art workspaces in the country is clearly there. Flexspace is a big market, but without a major competitor in Egypt, Sherif believes that this new franchise partnership’s locations will quickly reach capacity once opened.
“We will work hard to market our IWG centres as outstanding destinations for our clients,” says Sherif. “Because of our experience in this market and the prime location, we can expect over 80% occupancy during the first year of opening. And we expect it to be fully occupied in the second and third years.”
What advice would Sherif offer someone else considering becoming an IWG franchise partner? Location, location, location.
“When you think about location, there are a few important things to remember,” he points out. “It has to be easy to get to with good transportation links… and it has to have access to a wide range of services and amenities.”
Happily for IC Group and IWG, Egypt’s New Administrative Capital ticks all these boxes and more.
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