The company’s sponsors are Fundación Privada Renta (the Foundation), Morgan Stanley Real Estate Fund (MSRE), Renta Corporación Real Estate S.A. (Renta) and the Group’s managers and other private investors (collectively, the Sponsors).

The Foundation was established in 1999 for the purpose of collaborating with different non-governmental and non-profit bodies and organizations to help alleviate social problems and living conditions for disadvantaged people. In 2007, the Foundation’s work involved collaboration with over 123 bodies, with around EUR 800,000 allocated to social projects. MSRE is a leading global financial investor in the property development sector, and Renta is a real estate company, active in both office and residential properties with offices in Barcelona, Madrid, Paris, London, Berlin and New York. Renta is listed on the Barcelona and Madrid stock exchanges.

The total Project cost is estimated at EUR122 million. The proposed IFC investment comprises up to EUR50 million in a combination of equity and debt, of which, up to EUR16 million could be in the form of equity, and the remaining amount would be in the form of debt.

72.19 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	48.12
Equity	24.06

* These investment figures are indicative

The project is being implemented in the following locations:

- Tangier Anass: in Tangiers, Morocco;
- Martil Essafia: in Martil, Tetuan (Morocco);
- Mixta Costa Cabo: in Cabo Negro Coast in Tetuan (Morocco);
- Tetuan Marjane: in Tetuan, Morocco; and
- Résidence de la Paix: in Dakar, Senegal.

All of these projects are located on Greenfield and urban sites, duly approved by the local authorities for such residential developments.

The project’s anticipated development impacts include:

- increased supply of affordable housing to thousands of households in Morocco and Senegal;
- promotion of foreign direct investment from a European company into Africa;
- local sourcing of construction materials and property development services for the project; and
- enhancement of environmental, social and product quality standards amongst the local property development service providers.
The Group plans to recruit about 125 people directly, and several others indirectly, for the project.

IFC will provide a long-term financing package, comprising equity/quasi-equity and debt, to one of the pioneering property development companies focusing on affordable housing in Africa. IFC will also enhance the Group’s initiatives to work with the local construction contractors in order to improve their environment, health and safety standards.

This is the first time the Sponsors, who are based in the European Union and USA, are expanding in Africa. They seek IFC’s participation in the Project, as it would reinforce the Group profile, diversify its financing sources and help mitigate the potential political risk as the Group expands into new emerging markets.

This is a Category B Project according to IFC’s Procedure for Environmental and Social Review of Projects because, as a result of its due diligence, IFC has concluded that the potential adverse environmental and social impacts presented by the project are few in number, site-specific and have been or can be readily mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

While all Performance Standards are applicable to this investment, a review of company information indicates that the investment will have impacts that must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labour and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement

Depending upon project circumstances, issues covered by PS6 Biodiversity Conservation and Sustainable Natural Resource Management and PS8 Cultural Heritage may also be encountered from time to time.

The key environmental and social issues have been identified as the existence of a social and environmental assessment and management system (PS1) (specifically the existence of a site screening/assessment procedure) and contractor management (including performance on PS2, PS3 and PS4). Furthermore appropriate procedures and protocols need to be developed to address PS5, PS6 and PS8 as and when these are brought into effect on specific projects.

Further information is provided in the project ESRS.