CAIRO: The Holding Company for Tourism (HCT) announced yesterday it is launching legal action against Emaar Misr to reclaim the Sidi Abdel Rahman land plot sold for LE 1.2 billion earlier this month.
HCT’s announcement came one day after the expiration of the deadline announced by the Ministry of Investment for Artoc Group to sell its 60 percent stake in Emaar Misr to Emaar Properties without reaching a deal.
According to an HCT statement, the company will begin “immediately reclamation procedures specified in the land sale contract and notify the local authorities in the Marsa Matrouh Governorate to take the “necessary actions. HCT added the ongoing dispute within Emaar Misr and its failure to execute the Sidi Abdel Rahman project in a timely manor has left HCT “concerned over the security of the down-payments made by early subscribers to the project.
Earlier this week, the Capital Market Authority (CMA) declined Emaar Misr’s application for share-listing Sunday, citing the company s failure to submit financial statements reflecting the company’s activities over a one-year period.
Emaar Misr has since filed an appeal to the CMA’s decision, insisting on listing the company’s shares as a prerequisite to selling its stake. In a statement earlier yesterday, Artoc Group Spokeswoman Reham Yaseen said the company has fulfilled all of its obligations including depositing its share of the company’s issued capital at Arab African International Bank and wished to terminate the partnership as soon as the UAE side makes its deposit.
Emaar Properties was not available for comment as of press time. The company has avoided commenting to the media since the beginning of its operations in Egypt with the establishment of Emaar Misr in March, 2005.
The last statement made by Emaar Properties came on March 13, when the company announced it has agreed with Artoc Group to acquire 100 percent of Emaar Misr by March 27. No deal value has been disclosed but media reports from Noozz and Al Alam Al Youm estimate Artoc is set to receive $160 million (LE 900 million) for its share.
According to Artoc Group Chairman Shafik Gabr, Emaar Misr now controls LE 6 billion in assets. The company has already launched construction of a $4 billion (LE 23 billion) residential development in El Mokattam and has finalized plans for the Sidi Abdel Rahman Marasi project, but is yet to begin construction.
Artoc Group and Emaar Properties have, on separate occasions, announced Emaar Misr is looking for more development opportunities on the Red Sea coast and in the Nile Valley between Luxor and Aswan to capitalize on the recent trend of developing the second home concept in Egypt for Arabs and Europeans.