MOROCCO – Public Investment Corporation (PIC), on behalf of the South African retirement fund Government Employees Pension Fund (GEPF), is investing US$50 million for a 13% stake in Aradei Capital.
This transaction allows Aradei Capital to diversify its financing and to welcome a leading international shareholder alongside the Label’Vie Group (LBV), the European Bank for Reconstruction and Development (EBRD) and other groups such prestigious companies as Sanam Holding and Best Financière, said Aradei Capital in a press release.
The company aims to position itself as a leading real estate company in commercial real estate, a sector in full expansion in Morocco, stimulated by the emergence of OPCI vehicles favored by the new legal framework.
In an unprecedented global crisis, the completion of this transaction demonstrates the solidity of the fundamentals and growth prospects of Aradei Capital, continues the same source.
“We are proud to welcome GEPF to our shareholders and look forward to a long-term partnership,” said Nawfal Bendefa, CEO of Aradei Capital.
“This capital increase is key to financing our development plan. At the end of this crisis, we anticipate a change in commercial real estate standards, which will probably be a growth engine for our activity.”
This transaction is a mixed capital increase and share acquisition transaction with the EBRD.
“Our investment in Aradei Capital demonstrates our strategy in Morocco to promote innovative financing and the development of capital markets. We will remain an active shareholder to support the growth of the property sector, and contribute to the development of commercial real estate in Morocco,” said Marie-Alexandra Veilleux-Laborie, Morocco Director of the EBRD.
The EBRD supported good governance and the growth of the company, which attracted a renowned international investor such as PIC.
“Partnerships are essential to enable us to execute our African strategy. Aradei Capital has the expertise we are looking for in Morocco to allow us to move forward on our partnership approach,” said Vuyani Hako, interim CEO of PIC.
“We are also particularly interested in the growth presented by Aradei Capital through its strategy of diversification towards other asset classes in rental property. We believe that our client, GEPF, will benefit from this long-term strategy,” he concluded.
PIC is an asset management company owned by the government of the Republic of South Africa represented by the Ministry of Finance as a shareholder. It manages several investment vehicles and invests throughout the African continent and beyond.
PIC manages a diversified investment portfolio in several sectors of the South African economy and also controls more than 10% of the Johannesburg Stock Exchange through listed participations.
PIC is the largest asset management company in Africa. PIC’s clients are mainly public sector entities.
Clients include the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund (UIF), the Compensation Commissioner Fund (CC), the Compensation Commissioner Pension Fund (CP) as well as the Pension Fund of Associated Institutions (AIPF).
PIC manages a diversified investment portfolio, which includes several asset classes. These include publicly traded stocks, real estate, private equity and social impact investments.
In addition to financial returns for its clients, PIC seeks social returns by investing in projects that guarantee inclusive growth.
Aradei Capital is a Moroccan real estate company, one of the leaders in its sector, whose main activity revolves around the acquisition, operation and development of real estate assets with a view to generating long-term rental income.
The property company relies on the expertise of the management company REIM Partners, to which it has delegated the management of its assets.
Backed by a prestigious shareholding structure (Label’Vie, BERD, SANAM, Best Financière and now PIC), Aradei Capital has a portfolio of 29 assets spread across 15 cities in the Kingdom, totaling a rental area of more than 320,000 m 2 .
Aradei Capital aims to diversify its portfolio through new asset categories, notably industrial, offices, logistics and hotels.