JEDDAH, 18 May 2007 — BMCE Capital, the investment banking subsidiary of BMCE Bank, the second largest private bank in Morocco, raised the first $100 million of its $250 million Maghreb Siyaha Fund, the company said on Wednesday.
The fund unveils a unique opportunity for leading Bahrain & Saudi Arabian-based institutions and individual investors to partner with leading Moroccan entities as a first step into successful investments in Morocco and the rest of the Maghreb region.
The Maghreb Siyaha Fund offers a variety of investment opportunities managed by multi-disciplined fund managers and experienced board of directors that have access to a huge network of deal flows, multifaceted expertise, financial products and off market transactions while conforming with international standards and transparent policies.
“The expansion and development of the Maghreb region has been exponential in the past years, and the tourism and retail sectors specifically are forecasted to grow over six times by 2012, to reach over $20billion in investments,” Jaloul Ayed, chairman of the board, BMCE Capital and Maghreb Siyaha Fund, said. “This potential attracted significant investments from outside the Maghreb, predominantly from GCC states and Europe, and initial inquiries indicate that a minimum of 25 percent of the overall fund’s capital will be raised from investors in the GCC region. Our roadshow meetings this week aim to present this exclusive investment opportunity to a wider group of high net worth individuals and institutional investors looking for high rates of return in a rapidly developing region.”
The fund is close-ended and upon closing will be endowed with $250 million in equity, enabling it to potentially accumulate more than $600 million asset base constructed from the over $300 million of current deal flow that are being negotiated for early closing. Primary targets for development are gated communities, with a 20 percent allocation target from the final fund. However greenfield developments, apartment hotels, new hotels and secondary homes are each slated to receive between 15 percent and 20 percent of the fund. The first closing of the fund will be achieved in June 2007.
“Balancing the allocation of funds will ensure that the investments drive social and economic growth, as well as creating employment opportunities, at the same time as offering attractive rates to our GCC investors,” Rachid Alami, general manager, Actif Invest, Maghreb Siyaha Fund, said. “As the first fund to be fully dedicated to investing in a wide range of diversified yet complementary products in the tourism sector, we hope that it will act as a platform to attract investors taking their first step into successful investments in Morocco.” The Moroccan government has also indicated a strong commitment to boost the tourism sector.
by recently signing an “Open Sky” agreement with Europe to boost tourist numbers, targeted for 10 million arrivals by 2010. With a current growth rate of 12 percent, 6.5 million tourists visited Morocco in 2006. This growth is driving the injection of additional investment in the tourism sector from the government and both foreign and local private initiatives, BMCE is confident of strong rates of return for investors considering this sector.
Adel Douiri, Minister of Tourism, Handicraft and Social Economy, said commented “Maghreb Siyaha Fund will play an important role in financing those innovative projects that are likely to re-shape our Moroccan Tourism sector.”
