Palm Hills denies intent to give up more land

Ahram Online, Wednesday 4 May 2011

The former blue chip developer says it does not intend to return further land to the government

Palm Hills Developments (PHD) denied what some newspapers published today about the company’s intention to file new requests to return lands to the state.

PHD, which was severely injured from recent corruption charges, is currently implementing a strategy to dilute its once hefty land bank to secure its liquidity situation.

The company willingly gave up 10 million square metres of land it had acquired in the North Coast and 6th of October City.

Back in March, the administrative court annulled a contract granting the luxury real estate developer one million square meters in Kattammeya, ruling that that the land was assigned by direct order.

On Monday, Egypt's stock exchange suspended trading in Palm Hills shares on grounds of information regarding the company's plot of land confiscated by the governor of Marsa Matrouh.

The governorate of Marsa Matrouh -- a city on Egypt's Mediterranean coast -- had terminated a land agreement with Palm Hills Development and is taking back 2,229 feddans after the beleaguered property developer failed to pay its "financial dues."

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