April 15, 2014 / 10:57 AM / in 4 years

UPDATE 1-Egypt's SODIC settles with government over Eastown project

(Adds detail, background)

CAIRO, April 15 (Reuters) - Property developer SODIC has signed a dispute settlement with Egypt’s government, agreeing to pay 900 million Egyptian pounds ($129 million) over seven years after a revaluation of its Eastown scheme in Cairo, the company said on Tuesday.

Egypt’s investment minister Mounir Fakhry Abdel Nour said on April 6 that SODIC had revalued land bought from the state for the project and agreed to pay the difference over the sum it had paid initially.

SODIC had not officially commented on the settlement until Tuesday’s statement.

“With this settlement all disputes with the Housing Ministry ... over this land have ended,” SODIC said.

The legal dispute related to the Eastown project in New Cairo, including offices, shops and homes in a development twice the size of London’s 97-acre Canary Wharf district.

The government had sought to revoke SODIC’s rights over the east Cairo tract because of delays.

The new settlement gives SODIC five years to develop the project, the company said.

Its shares were up 2.7 percent at 25.90 pounds by 1033 GMT. ($1 = 6.9802 Egyptian Pounds) (Reporting by Shadia Nasralla; Editing by David Goodman)

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