DUBAI (Zawya Dow Jones)--Egypt's cabinet agreed late Sunday that Egyptian developer Talaat Mostafa Group, or TMG, should be allowed to keep the land of a massive real-estate development outside Cairo that was at the heart of a dispute.
The cabinet's decision affirms the findings of a legal committee that ruled last week the controversial project could go forward.
The cabinet decided to invalidate TMG's original Madinaty development contract and reallocate the land to the same company under a new contract, the cabinet said in a statement on its website.
The decision comes after an Egyptian court ruled that the land for TMG's flagship Madinaty development in new Cairo was given to TMG by the Ministry of Housing through the ministry's New Urban Community Authority, or NUCA, and not allocated through a competitive bidding process.
The court's decision on Sept.14 caused selling pressure on TMG shares as investors feared that the company would demand more money from land owners.
TMG shares closed 0.1% higher Sunday at EGP7.20 in a slightly positive market.
-By Shereen El Gazzar, Dow Jones Newswires, +201 2429 8286, Shereen.elgazzar@gmail.com
© Zawya Dow Jones News 2010
