Last Update 23:15
Saturday, 16 November 2019

Palm Hills plans to appeal court land sale verdict

Egyptian property developer Palm Hills said on Wednesday it plans to appeal against a court verdict scrapping a sale of state land to the company

Reuters, Wednesday 27 Apr 2011
Views: 1338
Views: 1338

The verdict on Tuesday piled more pressure on the company, which has seen its share price tumble almost 70 per cent this year as it struggled with mounting debts and liabilities.

Analysts say tight cashflow may make it hard for the company to make any additional payment for the land on Cairo's outskirts if it is ordered to do so by the court.

"We have no comment on the court ruling, which the company will take the necessary procedures to appeal," Palm Hills investor relations manager Bassem el-Shawy said in an emailed statement.

The court ruling comes in response to a suit filed by engineer Hamdy Fakhrany concerning the state's sale of 960,000 square metres of land in a Cairo suburb.

Palm Hills shares rose 1.1 per cent on Wednesday after dropping 3.6 percent after the verdict.

Egypt's stock exchange briefly suspended trading as the market opened, saying it was awaiting a response from the company to a request for unspecified information.

Property firms in Egypt are reeling under a string of legal challenges to their land holdings since a court ruled last year that a state deal with Talaat Moustafa Group (TMG) , the country's biggest developer, was illegal.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.