CAIRO: An Egyptian court said on Tuesday it would reach a verdict in a land dispute case involving Talaat Mostafa Group (TMG) on Nov. 22, extending a legal wrangle that has rattled investors in the property market.
TMG’s $3 billion Madinaty project has been caught up in a legal dispute since last year over the purchase of land directly from the state instead of by public auction.
Shares in TMG were down 3.8 percent at 1230 GMT.
"The shares are down because of further postponing of the verdict. Anything short of a verdict will affect the stock," Mohammed Radwan from Pharos Securities said.
The legal challenge to TMG’s flagship Madinaty development last year sparked a sector crisis as several copycat lawsuits were launched. The property market downturn worsened with the ousting of Egyptian President Hosni Mubarak in February.
