CAIRO: Real estate firm Egyptian Resorts said on Sunday its board of directors agreed to take back a piece of land the company had sold for about $11 million after the buyer failed to meet some sale requirements.
The firm, which makes most of its money selling land to developers, has not sold any plots since the third quarter of 2008, when the global financial crisis dampened appetite for big real estate purchases in Egypt.
But analysts say the company’s earnings could recover as early as next year as demand picks up, especially if it is able to benefit from new management and a partnership with property developer Orascom Development Holding.
The sale of the 80,900 square meter plot, which had been made at about $139 per square meter, fell through after the buyer failed to meet some largely procedural requirements, investor relations manager Abu Bakr Makhlouf said.
"There were several other issues than just the financial issues," he said.
Egyptian Resorts has sold land for as much as $200 per square meter, and said this month it has several new deals in the pipeline.
Mohamed Kamel, the firm’s chief executive, told Reuters in April the company had enough cash and receivables to weather three to four years without sales.
