Egypt Independent

Committee: TMG should be charged almost LE14 billion in housing units



The legal committee tasked with re-evaluating land associated with the Madinaty urban development project this week recommended that the Housing Ministry charge the

Talaat Mustafa Group (TMG), which owns the project, LE13.9 billion in the form of housing units, representing 7 percent of the project's total value.

The recommended charge is some LE4 billion more than the minimum amount set by the Council of Ministers three weeks ago. 

According to informed sources, the committee is only mandated with evaluating the sale, but not with specifying the terms of payment, for which the Urban Development Authority is responsible.

The same sources explained that the price had been raised because TMG will be allowed to add more stories to the housing units currently under construction, thus generating increased profits. The ministry, for its part, will be able to make more money when it sells the units allotted to it, as property prices will most likely increase by the time the project is completed.

The ministry will further be able to subsidize national housing and infrastructure projects with the funds generated from the sale of the units.

Translated from the Arabic Edition.