Emaar’s Egypt unit shares plunge 5.7% after Marassi resort lawsuit

Shares in Emaar Misr, a unit of Dubai’s Emaar Properties, dropped 5.7 percent on the Egyptian stock exchange on Wednesday.

The fall followed a lawsuit that was filed against Emaar Misr to gain control of part of its Marassi resort on Egypt’s Mediterranean coast.

Emaar’s shares closed at 3.15 Egyptian pounds ($0.19), down 5.7 percent. They had earlier plunged as much as 7 percent.

Lawyer Khalid Abubakr told Reuters on Tuesday he had filed a lawsuit on behalf of his client, businessman Wahid Raafat, against Emaar Misr to claim more than 400 feddans – of 1.68 million square metres – of land in Marassi. Raafat has a contract of ownership from more than 35 years ago, Abubakr said.

“What caused us to make this claim to our rights is the release of a contract from the real estate registration authorities dated July 28 that makes clear the ownership of Dr. Wahid Raafat.”

An Egyptian court will hear the case on September 2, Abubakr said.

Raafat is an Egyptian businessman who serves as chairman and chief executive of EverGreen Renewable Energy Company.

Emaar Misr replied in a filing to the Egyptian Exchange on Tuesday that the claim had no legal basis. It said it bought the land from the government in an auction and it is registered in its name. It added that it would address Raafat’s lawsuit using legal channels.

Emaar’s Egyptian portfolio is worth about 53 billion Egyptian pounds ($3.20 billion) and Marassi is one of Emaar Misr’s largest projects.

Source: Reuters