Egypt's general prosecution announced that it has reached a settlement on Wednesday with the Madinaty real estate project, owned by Talaat Moustafa Group -TMGH, according to a statement by the general prosecutor's office.

As per the settlement, TMGH is expected to pay EGP3 billion to the government for changing purpose of portions of Madinaty project.

General prosecution noted that the settlement came after the investigations had proved that the government's compensation of the BUA is 319.6mn sqm which is 1.2mn sqm more than the previous estimated government share. Furthermore the investigations revealed that TMGH has violated land usage by an amount of 1,411 Feddans that has to be transformed in to green areas, in addition to an EGP3bn fine for changing activity.

The settlement also increases government’s share of fully-finished residential units in project by 1.16msqm to total 3.2ms

According to the recent developments, government’s extra shares of units are valued at EGP6.16 billion.