Developer Talaat Moustafa, Egypt Sign Settlement Over MadinatyTamim Elyan
Talaat Moustafa Group, Egypt’s biggest publicly traded developer, said it reached a settlement with the government over what the company agreed to pay for land it obtained during the rule of ex-President Hosni Mubarak.
Talaat Moustafa will give the government 3.2 million square meters (34 million square feet) of completed homes, the company said in a filing. It will also pay 2.9 billion Egyptian pounds ($380 million) over 10 years to change parts of its development plan for Madinaty, a residential project spread over 33 million square meters on the eastern outskirts of Cairo.
Egypt’s government has recently settled a number of disputes with developers over the price they paid for land prior to Mubarak’s 2011 overthrow. Six of October Development & Investment Co. agreed to pay 900-million pounds and Palm Hills Developments SAE will pay 96 million pounds.
“It is positive news not only for Talaat Moustafa but for the whole real estate sector,” Harshjit Oza, an analyst at Naeem Holding, said by phone. He added that the agreement sends a message of “commitment” by the government to end disputes with developers ahead of an economic conference planned for March.
A separate case against Talaat Moustafa regarding the company’s right to own of Madinaty, its biggest land asset, is awaiting a ruling from the constitutional court.