Shares in Emaar Misr, a division of Dubai’s Emaar Properties, fell 5.7% on the Egyptian stock exchange on Wednesday after a lawsuit was filed to gain control of part of its Marassi resort on Egypt’s Mediterranean coast.
Emaar’s shares closed at 3.15 Egyptian pounds ($0.19), down 5.7%. They had earlier fallen as much as 7%.
Lawyer Khalid Abubakr told Reuters on Tuesday he had filed a lawsuit on behalf of his client, businessman Wahid Raafat, against Emaar Misr to claim more than 400 feddans (1.68 million square metres) of land in Marassi. Raafat has a contract of ownership from more than 35 years ago, Abubakr said.
Emaar Misr said in a filing to the Egyptian Exchange on Tuesday that the claim had no legal basis. It said it bought the land from the government in an auction and it is registered in its name.