Moroccan real estate tycoon Alami Lazraq’s stake in ADI drops by $61 million

Key Points

• Alami Lazraq’s stake in ADI plunged by $61.8 million amid a 9.73% drop in share price over 16 days on the Casablanca Stock Exchange. 
• Lazraq has lost over $185 million in under three months, as investor caution grows over Morocco’s real estate market and regulatory uncertainties. 
• ADI shares are down 3.33% year-to-date, reflecting tightening liquidity, weak earnings, and a challenging outlook for North Africa’s property sector.

Alami Lazraq, Moroccan real estate tycoon and founder of Alliances Développement Immobilier (ADI), has seen the value of his stake in the company drop sharply by $61.8 million amid continued selling pressure on ADI shares on the Casablanca Bourse.

Lazraq owns a controlling 51.7 percent of ADI. Between May 6 and May 22, the value of his holdings fell from MAD5.87 billion ($635.13 million) to MAD5.3 billion ($573.35 million). This decline comes as investors grow increasingly cautious about Morocco’s real estate sector, concerned about profitability challenges, liquidity issues, and uncertainty over regulations.

This recent loss follows an even bigger drop earlier this year. From March 10 to April 10, the value of Lazraq’s stake fell by $123.26 million, dropping from MAD6.39 billion ($674.79 million) to MAD5.37 billion ($551.53 million). Taken together, Lazraq has seen his fortune shrink by more than $185 million in less than three months.

Market value slips below $1.1 billion

ADI, based in Casablanca, is the core business of the Alliances Group, which Lazraq founded 25 years ago. Over the years, the group has earned a solid reputation in North Africa’s real estate market, steadily expanding its projects and influence.

In the past 16 days, ADI shares fell nearly 10 percent, dropping from MAD514 ($55.66) to MAD464 ($50.25). This decline pushed the company’s market value below $1.1 billion, causing concern among shareholders and raising questions about the outlook for real estate investments across the region.

The decline in share price has directly affected the market value of Lazraq’s majority stake, which dropped by MAD570.53 million ($61.78 million). Even with the recent downturn, Lazraq remains one of the most important investors on the Casablanca Bourse.

Weaker year-to-date results raise concerns

So far this year, ADI shares have declined by 3.33 percent, reflecting growing worries among investors. Tightening liquidity, slower earnings growth, and unclear regulatory policies have all contributed to a more cautious mood in Morocco’s real estate sector.

A $100,000 investment in ADI shares at the start of the year would now be worth about $96,670, meaning a paper loss of $3,330. This contrasts with the generally positive performance seen in real estate stocks globally during the same period.