ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued the first-ever certificates of Sharia compliance to two real estate investment trusts — Signature Residency REIT and Rahat Residency REIT.
In pursuance of the Federal Sharia Court (FSC) judgement, the SECP issued Guidelines for Offering Islamic Financial Services 2023 to facilitate conventional financial institutions intending to convert themselves into Sharia-compliant business models.
Since the issuance of the guidelines, several entities have applied for certification as Sharia-compliant companies.
The Signature Residency REIT is a close-end developmental REIT with a fund size of Rs825 million and a four-year indicative life.
It aims to build apartments and retail units on land, generating income for investors through the sale of these units to customers. Similarly, Rahat Residency REIT is also a closed-end Sharia-compliant developmental REIT with a fund size of Rs1.65 billion and an indicative life of five years.
Investors will enter into a Shirkat ul Aqad partnership under REIT for acquiring real estate and executing contracts for construction, financing, sale, and redemption under the Sharia adviser guidelines.
Published in Dawn, August 26th, 2023
