SODIC Signs Settlement for 1,400-Acre Sheikh Zayed Land

SODIC Signs Settlement for 1,400-Acre Sheikh Zayed Land

Sixth of October Development and Investment Company (SODIC) said Egypt’s Court of Cassation issued a judgment on December 21, 2016, confirming a former judgment issued against its former chairman, Invest-Gate reports.

The court noted that the judgment and penalties only concerned the aforementioned personnel in their personal capacity and did not involve SODIC, in accordance with the provisions of law.

On September 21, 2015, a judgment was passed against SODIC Former Chairman Magdy Rasekh in absentia and in the presence of other defendants non-related parties to SODIC, with respect to SODIC’s Sheikh Zayed land of approximately 1,400 acres.

Based on the above judgments and during the course of the recent investigations carried out by the Illicit Gains Authority (IGA), SODIC was requested to respond to certain queries with respect to the land owned in Sheikh Zayed.

The real estate company attended such discussions to ascertain its solid legal position and that it had not committed any violations and was not part of any of the criminal proceedings mentioned above, noting that these issues are related to contracts signed over 20 years ago.

Nonetheless, the IGA insisted on the application of an article of the Illicit Gaining Law, claiming that SODIC had gained from the violation and that such gains must be returned with the possibility of settlement in accordance with articles of the law.

To avoid lengthy legal disputes that may result in negative implications on its operations and stakeholders, SODIC has signed a final settlement agreement on December 6 with the IGA.

In this regard, the company accepted to pay a total settlement amount of EGP 800 mn as a final and comprehensive settlement of all allegations raised against it, to be paid over two years.

The amount will be paid from existing funding sources, including the future cash flows generated from SODIC West – the development on the concerned plot of land, which is expected to reach in excess of EGP 9 bn.

In return, SODIC shall not be requested to pay any additional amounts regarding its Sheikh Zayed plot of land and to be discharged from any claims with respect to this matter.

The property developer noted it maintains its strong financial position and exceptionally liquid balance sheet and continues to leverage this strength to deliver to all its stakeholders, while pursuing growth opportunities.


Welcome! Login in to your account

Remember me Lost your password?

Don't have account. Register

Lost Password