Kuwait property mkt seeks financing solutions Egypt drops probe on TMG land deal

KUWAIT CITY, Aug 29, (Agencies): After half a year of recession, the local property market is still in need for measures to overcome financial strains and prod banks to enhance funding for real property projects, a specialized report said Sunday.
The slide of the real property sales in July resulted from the faltering demand and the wavering transactions in anticipation of government measures to amend the legislations and regulate the market, according to the report issued by Emaar Alahlia real estate co.
An early enforcement of the state five-year development plan can prod demand, revive the market and restore the confidence of investors.
The remarks of government officials about the ability of the government to realize the targets of the plan can contribute to the enhancement of real property prices in the coming two years.
The remarks can also revive the market in the first quarter of the coming year based on the sound tendency of the government to rehabilitate the national economy particularly in the commercial and investment activities.

The activity of the property market is closely related to the development plan on which investors pin high hopes to overcome the financial crisis through crediting facilities, the report affirmed.
The entire property market is driven by the activity of the residential sector which sets the pace of other sectors, according to the report.
The total value of transactions cleared in July in all property sectors stood at KD 130.5 million, down by 27 percent from the KD 191.4 million of the previous month.
The value of residential transactions in July stood at KD 72.9 million compared with KD 110.3 million in June.
The investment property sector slid by 52.4 percent on a monthly basis in July with the value of deals dropping to KD 37.7 million from KD 72.9 million in June, the report added.

CAIRO: Egypt’s General Prosecutor dropped an investigation filed by 45 parliament members over a state land sale between a former housing minister and Talaat Moustafa Group (TMG), the ex-minister’s lawyer said on Sunday.
The investigation started earlier this year after the former housing minister Ibrahim Suliman was accused of violations in a series of state land sales.
The members of parliament accused the New Urban Communities Authority (NUCA), a body under the housing ministry, of wasting public money when it sold the flagship Madinaty project to TGM during Suliman’s tenure. “The investigation has proved the allegation is not correct,” the lawyer Gameel Said said. “The deal has brought the government a value equal to 13 billion pounds ($2.28 billion).”
The amount equals the sum booked by NUCA in relation to the Madinaty sale.
TMG was the biggest gainer on Egypt’s benchmark share index on Sunday, rising 3.2 percent. The index was up 0.1 percent.

“The General Prosecutor’s decision is a strong support for the Madinaty land deal and is a very important clue that the price of the deal was fair at the time it was conducted,” said Nader Khedr, an investment and capital market analyst.
TMG is still waiting for an Egyptian court to rule on Sept. 14 on a separate appeal by an Egyptian citizen who accused NUCA of breaking the law by selling the Madinaty land directly to TMG instead of opening it up to bidding.
“The two cases are separate and ... we still cannot expect what the court ruling will be. We will have to wait and see,” said Khedr. He said that meant it was too early to firmly recommend buying or selling TMG stock.
TMG is Egypt’s biggest listed developer and Madinaty is one of its main projects. The site will include homes, schools, hotels and a golf course on 8,000 feddans (8,304 acres) of land on Cairo’s outskirts.
Suliman is still under investigation by the General Prosecutor over several other land sales.

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