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Egypt reaches LE9 billion settlement over Madinaty real estate project

The settlement ends a long-drawn out dispute over accusations that Mubarak government sold Madinaty for less than its true market price

Ahram Online , Wednesday 25 Feb 2015
Madinaty
Madinaty (File Photo: Al-Ahram)
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Egypt's general prosecution reached an LE9 billion settlement on Wednesday with the Madinaty real estate project, owned by Talaat Moustafa Group (TMG), after a long-drawn out land dispute, according to a statement by the general prosecutor's office. 

In 2010, Egypt's High Administrative Court decided in a court ruling that the $3 billlion Madinaty land deal is void, citing that "the method of the selling [of the state-owned land to TMG] made the price less than the land's market value."

Following the verdict in 2010, real estate prices dropped.

But in 2011, another court ruling asserted that the Madinaty contract was valid, but ruled that a committee be set up to reevaluate the lands not yet used for construction.

The project became mired in legal disputes because the Mubarak-era governments sold the land directly to TMG without a public auction as required by Egyptian law. 

Madinaty, which includes homes, hotels and a golf course, is one of the most ambitious examples of a Mubarak-era drive to re-house mostly rich and middle class Egyptians on the outskirts of the teeming, polluted capital Cairo.

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