Six of October Development & Investment Co. and Palm Hills Developments SAE, two Egyptian luxury real-estate companies, said they may make separate bids for a plot of land on the outskirts of Cairo in a government auction in July.
Hamdy Fakhrany, a private Egyptian citizen, said he is seeking the annulment of a land sale in New Cairo to Palm Hills Developments SAE because of irregularities in the way it was sold by the government.
Palm Hills Developments SAE led gains among Egyptian property developers after the government settled a dispute over land bought by Saudi Arabia’s Kingdom Holding Co., signalling it may take a similar approach in other contended cases.
Egyptian property developers are likely to report “weak” first-quarter earnings after construction was halted during protests that ended president Hosni Mubarak ’s 30-year rule and the government challenged past land purchases, Deutsche Bank AG said.
Palm Hills Developments SAE fell to a record low, leading a drop among Egypt’s real-estate developers, after Deutsche Bank AG said the company appears the most vulnerable among developers from “a liquidity standpoint.”