Talaat Moustafa Holding Group said on Sunday that it has waived the lawsuit against the New Urban Communities Authority (NUCA) in objection to the interest rate it the former owes to the latter in Madinaty project.
The company explained in a report to the Egyptian Stock Exchange (EGX) that it waived the lawsuit within the framework of the settlement the company made with NUCA to terminate the issues of Madinaty out of the keenness on the public interest and supporting construction and development.
Talaat Moustafa filed the lawsuit against NUCA to object to the interest rate used in calculating the dues on the company in Madinaty project, worth EGP 1.12bn, which was referred by the economic court by the concerned administrative court.
Talaat Moustafa said that high interest rates are used in calculating the instalments of special premiums, separate from the common price in government transactions. Since NUCA is a government authority and not a financial one, the lawsuit was waived.
The profits of Talaat Moustafa Group have increased by 61% during the first half of this year, reaching EGP 696.7m compared to EGP 432.1m during the same period last year.
In June, businessman Talaat Moustafa returned to the seat of a managing director and CEO of the group after he was released from prison with a presidential pardon.
Talaat Moustafa is one of the largest real estate developers in EGX. The group owns a group of residential projects; the most prominent two being Rehab city and Madinaty which are located on an area of 8,000 acres.
The company also owns Four Seasons hotels, Nile Plaza, San Stefano, and Nile Kempinski.