Misr Travel, Structure Line reach EGP 500 mn settlement
Misr Travel ends its dispute with Structure Line: Saudi Structure Line Development has agreed to pay an EGP 500 mn settlement to Holding Company for Tourism and Hotels subsidiary Misr Travel to end a years-long dispute over land in Nasr City, Hapi Journal reports, citing a statement. The company will pay in installments over six months, with the initial EGP 90 mn payment occurring after the final agreement has been signed. Enterprise was unable to independently verify the veracity of the claims made by the newspaper.
What’s the dispute about? Both companies had signed an agreement in 2016 to develop a residential project, dubbed Arena City Towers, on land owned by Misr Travel. Under the agreement, Misr Travel was entitled to have 51% of the project’s total sales over quarterly installments through a joint bank account to be opened by the Saudi side. However, Structure Line breached the agreement terms by taking all the project’s down payments for itself, failing to pay dues worth EGP 175 mn to Misr Travel since April 2019.
What’s next? Structure Line will resume work on the project after obtaining all the necessary licenses from the concerned government bodies.