Egyptian luxury real estate developer Sodic's profit is likely to be hurt by the cancellation of a land deal by a government authority, HC Brokerage said, cutting its price target on the stock by 6 per cent.

Sodic said in April that the New Urban Communities Authority had canceled Sodic's purchase of a plot for its Eastown project near Cairo.

The 860,000 sq m (9.3 million sq ft) Eastown project comprises residential units, offices, boutiques and hotels, according to Sodic's website.

'It would be difficult for Sodic to replace the Eastown land due to its prime location and attractive price,' HC wrote in a note to clients.

The company, which lost 193 million Egyptian pounds ($31.91 million) in 2011, could record a net loss of 200 million pounds in 2012 on possible impairment charges from Eastown, HC said.

HC cut its price target to 25.8 Egyptian pounds.

Egypt's once-booming property market, a major driver of foreign investment and growth, has been left reeling by a string of legal rows over state land sales.

Former Sodic chairman Magdi Rasekh, father-in-law of ousted President Hosni Mubarak's eldest son, was sentenced in March for selling state land for less than the market value.

Sodic's shares were up 2 per cent at 13.88 Egyptian pounds at 1055 GMT on Wednesday. – Reuters