Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Egypt Panel Proposes Talaat to Keep Madinaty Land

Sept. 22 (Bloomberg) -- Talaat Moustafa Group Holding should keep land on the outskirts of Cairo so the real estate developer can finish building housing units on the 33 million-square-meter site, a government-appointed legal committee recommended.

The proposal would reverse an earlier court ruling that annulled the government sale of the land due to irregularities, cabinet spokesman Magdy Rady told a news conference in Cairo today.

The committee recommended that the government revoke its existing sales contract with Talaat Moustafa before reallocating it to the same company, invoking a law that allows the authorities to assign land by a direct order to protect the “public interest,” the cabinet said in a statement distributed to reporters.

Talaat Moustafa is Egypt’s biggest publicly traded real estate developer and the Madinaty development is its biggest project. The project is designed to accommodate 600,000 people in 120,000 housing units. A court ruling to annul the sale, upheld on Sept. 14, prompted foreign investors to sell off Egyptian real estate stocks because of concern that developers will be forced to pay more for land they already own.

Shares of Talaat Moustafa were little changed at 6.96 Egyptian pounds at the 2:30 p.m. close in Cairo today, valuing the company at 14 billion Egyptian pounds ($2.45 billion), according to data compiled by Bloomberg. The government announcement came after the close of the market.

Advanced Stage

The committee said the size and progress of the project merits keeping the land with Talaat Moustafa, given that the company has already developed a “big part of the project, with infrastructure that includes buildings and services,” according to the cabinet statement.

The committee said that the state-run New Urban Communities Authority, which sold the land, should discuss the appropriate price of the land with the ministries of finance and housing before reassigning it to the company.

To contact the reporter on this story: Abdel Latif Wahba in Cairo at alatifwahba@bloomberg.net; Alaa Shahine in Cairo at asalha@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.