Invest in Pakistan’s Future with PAKREIT
Your Premier Source for Market Data and Insights on Pakistan’s Growing REIT Sector
About us
PAKREIT.PK is your source of market data for real estate investment trusts in Pakistan.
We are the premier tracker of Pakistan’s rapidly expanding REIT market.
We are firm believers that the next wave of substantial market gains for investors, and economic growth for developers and Pakistan’s economy hinges on systematic, and regulated investments in all facets of real estate & infrastructure.
REIT, as a widely accepted financial instrument, will supercharge the scale-construction and commerce sectors by attracting substantial volumes of institutional, professional, and retail capital.
This influx of capital into physical asset construction will ignite growth across over 100 local industries, spanning from cement manufacturing to artisanal crafts.
Real Estate Investment Trust (REIT)
A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool capital investors who earn dividends from real estate investments. Investors do not individually buy, manage, or finance any properties.
Src: Investopedia
REITs in Pakistan
As per the prevailing law in Pakistan, there are three basic types of REITs available
1. Rental REITs
Established for making investments in commercial or residential Real Estate with a purpose of generating rental income for the investors. Rental REITs acquire fully constructed, ready to rent-out properties and then manage their tenancy over the life of the investment. The revenues derived are distributed among the unit holders in proportion of their investment after adjusting for the relevant applicable operating expenditures.
2. Developmental REITs
In a Developmental REIT scheme, the REIT acquires land with the aim of developing commercial, industrial, or residential real estate through construction or refurbishment. Once completed, the properties are sold or rented out. Profits generated from these transactions are then distributed to the unit holders.
3. Hybrid REITs
Hybrid REITs in Pakistan merge the investment approaches of both Rental and Developmental REITs by diversifying into properties and mortgages. While not as popular as pure equity REITs, they still present an appealing investment alternative.
REIT Regulations by SECP
The document outlining the regulations and procedures for REITs begins with defining terms and their interpretation. Following this, it specifies the name of the specialized trust and identifies the parties involved. It then addresses the size of the REIT scheme and lays out the declaration of trust along with the trust’s objectives. The document further outlines the registered address of the trustee, the transfer and grant of REIT assets, and the obligations, rights, and powers of the management company and trustee.
Additionally, it covers the transfer of management rights, retirement or removal of the trustee, issuance of units to accredited investors, and provisions for public offerings. Moving forward, it addresses various operational aspects such as the issuance and transfer of units, registration and listing of units, and the pledge or lien of units. The document also discusses the rights of beneficiaries, procedures for unit holder meetings, and provisions for borrowing and customer advances.
Furthermore, it details investment strategies for REIT assets, valuation procedures, fees and charges, and guidelines for transactions with related parties. The document delves into audit requirements, determination of distributable income, and procedures for dividend distribution. It also outlines provisions for force majeure and frustration, the duration and dissolution of the trust, and procedures for revocation or cancellation of the REIT scheme.
Lastly, it mentions compliance with the REITs regulations of 2022, modification of the trust deed, limitation of liability and indemnity, application of relevant laws and accounting standards, and provisions for dispute resolution and confidentiality.
Assets for a REIT
Assets include following types: (a) residential; (b) commercial; (c) industrial; (d) agriculture; (e) healthcare; (f) transport and communication; (g) power; (h) energy; (i) telecommunication; (j) water and sanitation; (k) social, culture and commercial; (l) mining; (m) Real Estate forming part of Investment based REIT Scheme; or (n) any other type as allowed by the Commission.
Publicly available REITs
Public Offering and Listing of REIT Units:
- A REIT Scheme must be listed, contingent upon the issuance or sale of Units to the public, facilitated through an Offering Document/Prospectus approved by the Commission, within a maximum period of three (3) years from the date of Real Estate transfer or financial close, whichever occurs later.
- The REIT Management Company (RMC) is obligated to disclose all material information in the Offering Document/Prospectus as specified in Schedule IV of these Regulations.
- The REIT Scheme is required to adhere to the relevant public offering regime and listing regulations for the issuance of Units to the public and subsequent listing. However, the relevant securities exchange and the Commission reserve the right to evaluate the listing and public offering application in compliance with the public offering regime, and they retain the authority to approve or decline listing.
RMCs in Pakistan
The following companies are currently licensed by the SECP to provide REIT Management Services in Pakistan, as of 30th April 2024.
| Company Name | Type of License | Date of Issuance of License | Date of Last Renewal of License | Web Site |
|---|---|---|---|---|
| AKD REIT Management Company Ltd | RMS | 7/23/2010 | 7/22/2022 | AKD REIT Management Company | JamaPunji |
| Al-Meezan Investment Management Limited | RMS | 5/26/2022 | N/A | www.almeezangroup.com |
| Arif Habib Dolmen REIT Management Ltd | RMS | 9/3/2009 | 9/3/2022 | https://www.arifhabibdolmenreit.com/ |
| Atlas Asset Management Limited | RMS | 3/9/2021 | 3/9/2024 | https://www.atlasfunds.com.pk/ |
| Bodla REIT Management Company Limited | RMS | 1/13/2023 | N/A | https://www.bodlagroup.com/bodlapvtlogo |
| Fast REIT Management Company Limited | RMS | 7/7/2022 | N/A | TBC |
| Faysal Asset Management Limited | RMS | 4/27/2021 | 4/27/2024 | https://www.faysalfunds.com/ |
| Ijara Capital Partners Limited | RMS | 4/13/2022 | N/A | https://ijara.com.pk/ |
| IMM REIT Management Company Limited | RMS | 7/13/2022 | N/A | TBC |
| JS Investment Limited | RMS | 7/28/2020 | 7/29/2023 | https://jsil.com/ |
| Magnus Investment Advisors Limited | RMS | 12/24/2019 | 12/24/2022 | https://magnusinvestments.com/ |
| Providential REIT Management Company Limited | RMS | 10/26/2022 | N/A | https://providential-group.com/ |
| SB Global REIT Management Co. Limited | RMS | 7/14/2016 | 7/14/2022 | https://sbgrmc.com/ |
| Shields REIT Management Company Ltd. | RMS | 4/19/2023 | N/A | TBC |
| Sinolink REIT Management Company Limited | RMS | 2/7/2022 | N/A | TBC |
| TPL Reit Mangement Company Limited | RMS | 5/30/2019 | 5/27/2022 | https://tplfunds.com/ |
| Veritas REIT Management Co. Limited. | RMS | 2/28/2020 | In process | http://veritas.com.pk/ |
| Vision Capital Limited | RMS | 3/10/2023 | N/A | https://visioncapitallimited.com/ |
| Zameen REIT Management Company Limited | RMS | 5/16/2023 | N/A | https://www.zameen.com/blog/zameen-five-offers-exceptional-reit-returns.html |
| Alfalah Asset Management Limited | RMS | 6/20/2023 | N/A | https://www.alfalahghp.com/ |
| DHAI REIT Management Co. Ltd | RMS | 6/21/2023 | N/A | https://www.dhai-r.com.pk/ |
| Lake City Management Company Limited | RMS | 11/6/2023 | N/A | https://www.lakecitylahore.com/ |
| Rockville REIT Management Company Limited | RMS | 11/28/2023 | N/A | https://reits.pk/ |
| Hussain Lakhsni REIT Management Co Limited | RMS | 12/29/2023 | N/A | www.hussainlakhanireit.com |
REITs in Pakistan
REITs will be one of the leading growth sectors in the coming years. These are some external links to REITs in Pakistan. The information presented there is managed by the RMC and related enterprises.
| REIT | Link | RMC |
|---|---|---|
| Dolmen City REIT | https://www.arifhabibdolmenreit.com/properties/dolmen-mall/ | Arif Habib Dolmen REIT Management Limited |
| Globe Residency REIT | https://www.arifhabibdolmenreit.com/properties/globe-residency/ | Arif Habib Dolmen REIT Management Limited |
| SB Global REIT | https://sbgrmc.com/ | SB Global REIT Management Company Limited |
| IMARAT REIT (launching soon) | https://imarat.com.pk/ | IMARAT REIT Management Company Limited |
| TPL REIT Fund 1 | https://tplfunds.com/tpl-reit-fund-i/ | TPL REIT Management Company Ltd. |
| Signature Residency REIT | https://www.arifhabibdolmenreit.com/properties/signature-residency-reit/ | Arif Habib Dolmen REIT Management Limited |
| Silk Islamic Developmental REIT | https://www.arifhabibdolmenreit.com/properties/silk-gardens-2/ | Arif Habib Dolmen REIT Management Limited |
| Pakistan Corporate CBD REIT | https://www.arifhabibdolmenreit.com/properties/pakistan-corporate-cbd-reit/ | Arif Habib Dolmen REIT Management Limited |
| DHA Dolmen Lahore REIT | https://www.arifhabibdolmenreit.com/properties/dha-dolmen-lahore-reit/ | Arif Habib Dolmen REIT Management Limited |
| Naya Nazimabad Apartment REIT | https://www.arifhabibdolmenreit.com/properties/naya-nazimabad-apartments-reit/ | Arif Habib Dolmen REIT Management Limited |
| Sapphire Bay Islamic Developmental REIT – Lahore | https://www.arifhabibdolmenreit.com/properties/sapphire-bay-islamic-developmental-reit-lahore/ | Arif Habib Dolmen REIT Management Limited |
| Imperial Development REIT | https://www.arifhabibdolmenreit.com/properties/imperial-developmental-reit/ | Arif Habib Dolmen REIT Management Limited |
| Silk World Islamic REIT | https://www.arifhabibdolmenreit.com/properties/silk-world-islamic-reit/ | Arif Habib Dolmen REIT Management Limited |
| Rahat Residency REIT | https://www.arifhabibdolmenreit.com/properties/rahat-residency-reit/ | Arif Habib Dolmen REIT Management Limited |
| RIGGS1 REIT | https://reits.pk/ | RockVille REIT Management Company Ltd. |
We will be updating this list to include all available REITs in Pakistan.