The Egyptian Center for Economic and Social Rights has filed a law suit contesting the allocation of 2.8 million square meters of land in Fayoum governorate to the Amer Group for building a luxury resort.
The real estate developer was granted a 99-year concession deal to build Porto Fayoum, a residential/recreational compound on the northern shore of Fayoum's Lake Qarun.
According to the suit, the land was allocated to Amer Group in December 2010 by direct order, ignoring bidding regulations stipulated by the law. Former officials, including the prime minister and the Amer Group's chairman are implicated in the allegations.
The listed conglomerate said on Thursday its unaudited first quarter net profit was LE133.9 mn ($22.5 million).
Earlier in May, Amer Group returned 588 feddans (2.6 million square metres) to the governorate of Matrouh following the termination of a buying agreement. A statement from the company said it had made the decision “in order to reduce its exposure on the north coast as it foresees a possibility of lower demand for second homes in Egypt in the near term.”