(MENAFN- Morocco World News) Rabat – Good news from the Addoha Group. The property developer is continuing its upward deleveraging trend to reduce its debt under the Generation Cash Plan (PGC).
At the end of the first quarter of 2017, Addoha Group's debt stood at MAD 5.8 billion compared to MAD 9.3 billion at the end of 2014. This represents a reduction of 38 percent in 27 months. The group managed to get rid of MAD 360 million in debt in the first three months of the current financial year, an amount that exceeds even the forecasts of real estate gurus.
For 2017, Addoha wants to achieve a net deleveraging of MAD 1.4 billion, more than one billion of which will be liquidated in nine months.
Concerning the group's activity, Addoha has regained its dynamism. The pre-sales of titled goods exceeded 1,600 units, compared to the 1.375 unites targeted, hitting a realization rate of 119 percent. This outstanding activity rate, however, only cashed MAD 1.81 billion, against the 1.89 billion expected by the company in their objectives, marking a realization rate of 96 percent.
Pre-sales reached a total of 3,150 units, compared to a target of 3,075 units for the first quarter. The group succeeded in exceeding their target by hitting a 102 percent realization rate of the estimates, setting a positive trend for the company's 2017 objective to achieve 12,300 units.
Addoha's in works investments will reach MAD 1 billion, against the MAD 1.11 billion fixed in the company's plans. The budget for the year corresponds to a production of 14,000 units, for a total budget of MAD 4.46 billion. Until now, Addoha has spent MAD 43 million on the acquisition of land, representing an annual budget of MAD 300 million.
Positive figures that support the company's deleveraging plans, which have totaled MAD 3.5 billion since the beginning of the PGC, set Addoha's net debt at MAD 5.81 billion, down from 9.3 billion.
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