Egyptian real estate stocks falling due to the issues of invalidity of the sale of lands
The Egyptian Real estate stocks facing a hard time because of issues of invalidity of the sale of land to some companies and brought a number of officials in front of the Egyptian judiciary, prompting some shares of this sector to collapse.
There are lawsuits on the company Palm Hills, TMG invalidity of the sale of land for them as well as charges of corruption, some officials of the two companies. The situation is the same with my company SODIC and Egyptian for Tourism Resorts.
The stock Talaat Moustafa Group lose more than 50 percent since the beginning of the year and so far, while Palm Hills was the most affected stock collapse of more than 60 percent and about 40 percent SODIC and Egyptian Resorts about 42 percent.
Mohsen Adil, managing director of the Pioneers for the management of investment funds “sector is stagnating and clear during the current period in anticipation of the outcome of the problems, issues of land obtained by the direct allocation of some companies without reference to the law of history.”
In the opinion of Hossam Abu Shamla, head of research firm Elorouba securities that the real estate sector is being subjected to severe neglect.
He says “the former government left the problem of the cities of the draft (of the TMG) occur not resolved by a law regulating the sale of land is illegal.”
Palm Hills and facing the Governing spoken on 26 April in a lawsuit challenging the purchase of state land in New Cairo area of 230 acres was recommended by the Commissioners of the State last month held the invalidity of the earth.
Palm Hills is the second company is facing such a sentence after a court invalidated a contract of sale the land of the “cities” of the TMG to three billion dollars in the case highlighted the risks of investing in real estate sector in Egypt by the end of last year.
The real estate industry analyst, told Reuters on condition of anonymity “of the biggest disadvantages of the housing sector and real estate is that the corporate giant by the king of the symbols of the former regime, which puts the sector as a whole in the negative side and therefore do not recommend investors to invest in the sector at this time.”منها.
