ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved a proposal for launching the country’s first Real Estate Investment Trust (REIT) scheme.
The REIT scheme will be managed by Arif Habib REIT Management Company Limited.
Sources said the REIT scheme has been approved by the name of ‘Dolman City REIT’.
It may be recalled that REIT rules were released by the apex regulator a couple of years ago but no progress could be made due to various issues related to valuations, etc.
Arif Habib REIT Management Company was one of few companies who submitted their REIT Scheme for approval of the SECP.
For starters, REIT is a mutual fund of real estate investment. The property would be offered to the general public in units to be listed on the stock exchanges. A press release by the SECP on Wednesday said that REIT was a recognised investment tool in many developed countries like USA, UK, Australia, Malaysia and Japan.
The regulator said that mutual funds, modaraba, corporate, banks and other investors will have access to a new asset class (REIT Units) which will enable them to diversify investments and manage risks.
The assets of the REIT scheme will be maintained in the name of the trustee and its affairs will be managed by a licenced management company.
The SECP stated that it had approved draft trust deed, business plan and conditional valuation report of the (Arif Habib REIT) scheme. “Earlier, the SECP had approved real estate, name and trustee of the REIT scheme,” the regulator concluded.
Published in Dawn, January 15th, 2015
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