Palm Hills Leads Egypt Developer Gains After Toshka Resolved
Palm Hills Developments SAE (PHDC) led gains among Egyptian property developers after the government settled a dispute over land bought by Saudi Arabia’s Kingdom Holding Co., signalling it may take a similar approach in other contended cases.
The Cairo-based luxury real-estate developer surged to the highest level in more than two months. Six of October Development & Investment (OCDI) Co., also known as Sodic, climbed 3.7 percent. Talaat Moustafa Group (TMGH) Holding, Egypt’s biggest publicly traded developer, rose to the highest level in two weeks. The benchmark EGX 30 Index (EGX30) advanced 0.7 percent by the 2:30 p.m. close in Cairo.
The North African country’s government ended a disagreement over a 100,000-feddan (104,000-acre) land plot in the Toshka region in southern Egypt by signing a new contract last week. Palm Hills, Sodic, Talaat Moustafa and Egyptian Resorts Co. (EGTS), a Red Sea resorts developer, all face legal challenges to land they bought from previous governments on the allegation they violated the law because the sales were not conducted at public auctions.
“The Toshka settlement bodes well for the real-estate sector because it shows the willingness of the government to work with investors to avoid legal battles over previous land sales,” Omar Darwish, an equity sales trader at Cairo-based Commercial International Brokerage Co., said by phone.
Egypt’s government is studying legislation to legalize land sales that violated the law under previous governments to end land disputes in court, Al Masry Al Youm reported on May 26, citing Omar El Shawadfy, head of the National Center for State Land Utilization.
Shares of Palm Hills rose 5.6 percent to 2.45 Egyptian pounds. Sodic gained to 68.23 pounds, the biggest increase in more than two weeks. Talaat Moustafa advanced 1.7 percent to 4.76 pounds. Egyptian Resorts jumped 4.9 percent to 1.08 pounds, the highest level in two months.
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