Saturday, December 23, 2006

More homes to be built for low-income families in Morocco

As per the information given by a company official, a company that was formed by Moroccan investors to supervise the construction of 22,000 homes for families with low-income in Morocco will float the local stock market in two years time.

House Invest, which was formed by Jet Asset Management in Morocco and Rea Capita, based in Bahrain has agreed to spend around $400 million on social housing projects in Tangier, Agadir, Casablanca and Marrakesh for the past four years. A fund specializing in social housing which includes top investors from UAE, Saudi Arabia, Kuwait will acquire about 90 percent of the capital of House Invest, and the rest will be kept by Jet and Real Capita.

The Managing Director of Jet Asset Management while speaking during a
presentation in Casablanca said that though they have sufficient funds to build
the 22,000 houses, they are planning for an IPO through which the project
company can reach the Moroccan Stock Exchange, thereby bringing more capital for
more projects.
The moves made for eradicating the slums in Morocco, in addition to the reforms made in the financial sector for lowering the borrowing rates coupled with the incentives provided to the Banks for lending money to people with irregular incomes have resulted in a huge demand for low-income houses in the Kingdom of North Africa.

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