Morocco's Alliances sees growth on property boom

CASABLANCA, June 25 (Reuters) - Moroccan property company Alliances Developpement Immobilier, which aims to raise 2 billion dirhams ($271.8 million) in an IPO, is expecting a five-fold jump in net profit in 2010 from last year on a real estate and tourism boom, its chief executive said.

"Our strategy focuses on strengthening our performance in all segments of our business," Alliances Chief Executive Alami Laraq said late on Tuesday as he outlined his company's development prospect to market analysts and reporters.

Alliances will sell 2.915 million shares for 685 dirhams each, including 1.1 million shares from a capital increase, with subscriptions open from July 2 to July 7, he said.

Subscriptions may close on July 3 if demand is heavy.

The stake of the founding Lazraq family will fall to 60.13 percent from 82.64 percent.

Alliances specialises in studying, building and selling housing and tourism developments, often in partnership with major operators including Accor (ACCP.PA), Four Seasons Hotels, Club Med (CMIP.PA) and TUI (TUIGn.DE).

The IPO revenue would help Alliances to diversify its business further, mainly in the middle class housing sector.

"The IPO receipts would allow us to improve our business plan," added Lazraq.

Market analysts said Alliances is seeking also to raise its market profile mainly among foreign investors as 18 percent of the IPO would be allocated to foreign investors.

"The 18 percent share for foreign investors was decided with sovereign funds in mind because such funds want big business opportunity," said a banker involved in the issue planning.

Alliances said it expects its net profit to increase to 989.153 million dirhams in 2010, 473.954 million in 2009 and 231.210 million dirhams in 2008 from 171.735 million last year.

Last year Morocco drew a record 7.4 million foreign tourists and the government expects the number of visitors to reach 10 million in 2010.

Tourism accounts for 8 percent of the north African kingdom's gross domestic product and is its largest foreign currency earner.

Real estate is also one of the fastest growing segments of the small Casablanca bourse thanks to the tourism boom coupled with a government-backed drive to improve low-income housing. (Reporting by Lamine Ghanmi; Editing by Sue Thomas)