Talaat Mostafa Group (TMG) Holding has signed a settlement agreement to resolve over Alexandria’s San Stefano project, Invest-Gate reports.
Under the deal, TMG Holding will pay an annual amount of EGP 7 mn to the governorate, with an increase of 12% per year, thereupon settling disputes dating back to 2016, according to an official statement on May 20.
The settlement was signed between Hisham Talaat Mostafa, the company’s CEO and managing Director, and Alexandria Governor Mohamed El Sherif, in the presence of Prime Minister Mostafa Madbouly and Minister of Local Development Mahmoud Shaarawy, the statement noted.
Earlier, TMG Holding has committed to pumping at least EGP 5 mn per year into development projects, as part of its corporate social responsibility (CSR). On another note, the Egyptian developer maintained a stable pace of development in 2019, with real estate transactions dipping by 4% only to hit almost EGP 20.4 bn versus sales in 2018.
Amid the local market’s quasi-stagnation, the 2019 drop in sales primarily stemmed from net acquisition activities valued at EGP 300 mn for developing one school in east Cairo’s Rehab City, compared to directing EGP 1 bn for a wider scope of projects in the prior year, the company announced back then.
The developer envisages an optimistic outlook for property transactions and plans to post kind of the same results during the current year, particularly in light of the company’s extensive land bank, aiming to adopt new technologies as part of its service provision, it concluded.
