Leading Moroccan real estate developers Vecteur LV (VLV) and Petra said they have won approval from the shareholders for their merger, thus leading to the creation of a new commercial real estate platform.

As a result of the merger, the combined portfolio now includes 27 assets across 15 cities in the kingdom, making up nearly 215,000 sq m of rental space and almost 480 retail premises.

VLV is a subsidiary of Label’Vie, a leading food retailer, listed on the Casablanca Stock Exchange, and the exclusive Carrefour franchisee in Morocco.

VLV has been used by Label’Vie as its real estate platform to develop its supermarkets and the associated retail galleries.

Petra, which is owned by Best Financiere and Sanam Holding, is a pioneering commercial real estate developer and owner of a diversified portfolio of retail assets in the kingdom with three shopping centres and four shopping galleries located across major cities.

The newly-forged real estate platform is set to become the premier REIT (Real Estate Investment Trust) in Morocco (Organisme de Placement Collectif Immobilier - “OPCI”) with the legal and regulatory framework almost in place.

REITs are expected to drive the future growth and expansion of the commercial real estate sector in Morocco. The retail sector in particular is growing steadily with competition intensifying, urbanization levels increasing and purchasing power rising.

Zouhair Bennani, the chairman of Label’Vie and Best Financiere, said: "I am pleased to announce that the shareholders of Petra and VLV have taken this important decision. The resulting real estate platform is now set to start a new era of expansion and our role, alongside our partners, will be to support this new entity in its path to become a major real estate vehicle and contribute to the development of the REIT industry in Morocco and regionally."

Said El Alj, Sanam Holding’s chairman, said: “We are delighted to be part of this investment with quality partners and teams. This merger will allow us to seed an investment platform in the commercial real estate in a similar way that we have been able to boost several other industries in the country.”

In 2015, the European Bank for Reconstruction and Development (EBRD) acquired an equity stake of 45 million Euros in VLV to support not only the expansion of the retail sector in Morocco but also to promote the introduction of a Moroccan REIT environment.

This capital increase was accompanied by the introduction of new governance for VLV and entering into an asset management agreement with REIM Partners, an independent Moroccan asset manager.

Marie-Alexandra Veilleux-Laborie, EBRD director for Morocco said: "Our investment in VLV demonstrates our strategy in promoting innovative financing structures and capital market development in Morocco. We are highly supportive of the merger, which will lead to a breakthrough into the REIT environment."

"The new platform will also contribute to the development of a modern retail infrastructure in the country, particularly in the regions," he noted.

Nawfal Bendefa, the chief executive of REIM Partners, said: "Our vision is to deliver a stable yield from a diversified portfolio of real estate assets and through active asset management, further development as well as further fund raising."

"We will work with our investors on the appropriate capital strategy to ensure growth and access to liquidity for this new market segment in Morocco," he added.-TradeArabia News Service