The real estate group Addoha has managed to exceed the targets it set for itself two years ago to deleverage  of MAD 2.7 billion by paying off MAD 3.21 billion worth of debt instead.

 Anas Sefrooui, CEO of the group (the reader needs to know who is he, we can’t assume a reader from Norway or Sweden knows who he is.), revealed last October that the teams in charge of strategy management in his group were working on a cash generation plan. In a report released earlier this week, the financial communication department of the real estate giant revealed that Addoha Group’s net indebtedness reached MAD 3.21 billion, or 119% of the target set for that date, which was MAD 2.7 billion.

Had the group adopted austerity measures, especially as far as the shareholders are concerned, or had it scaled down its investment that reached a total of MAD 3.8 billion last year alone, the deleveraging in Addoha could have been even more efficient in connection to the targets set.

Still, the results achieved in deleveraging are impressive given the context of high remuneration for the group’s shareholders, as dividends it distributed in 2016 hit 12.5 percent.

The performance of the company is being attributed to its strategy of focusing on the commercialization of units completed before realizing new constructions. Among 12,070 pre-sold units, 5,742 were already produced and completed. As far as construction is concerned, Addoha finalized 13,388 units last year, exceeding its target by 388 homes.

Within the framework of its cash generation plan, the company had decided not to repay any debt for goods produced and not to produce units before 70 percent of their commercialization is achieved.

This cash generation strategy enabled the group to collect MAD 8,27 billion in the fiscal year of 2016 alone and a total of MAD 18,3 billion since the launch of the strategy.

Source :Morocco World News