KARACHI: Pakistan’s first real estate investment trust (REIT) scheme is going to be listed on the stock exchange by the end of May 2015.
The Arif Habib Dolmen REIT Management has been formally entered in the REI business by becoming the first to incorporate a company under Non-Banking Financial Company (NBFC) Rules, to provide REIT Management services and float REIT schemes in Pakistan.
According to CEO of Habib Dolmen REIT Management, Mumtaz Ejaz, initially 9% dividend will be offered and 25% stake in the Dolmen City REIT will be offered to both domestic and foreign investors. After the successful completion of first five years, the rate of dividend will be raised to 14%. Initial rate of dividends is very high as compare to benchmark set by KSE100 stock index that is currently 4.4%. Dolmen Mall will hold the assets that is currently hosting the multiple stores such as Mango and Debenhams, and other adjacent house of Engro Corp.
Mr. Ejaz said that they are also planning to list four or five REITs on the Karachi Stock Exchange (KSE) within two years.
Dolmen City that is the joint project of the Arif Habib Group – Pakistan’s largest businesses houses – and Dolmen Group – a most popular real estate developer. Both groups have equal shareholding in Arif Habib Dolmen REIT Management Company. Dolman City is one of the most expensive project in Pakistan located at Clifton, Karachi comprising built-up area of approximately four million square feet, four towers – Executive Tower (seventeen-storey, operational), The Harbour Front (nineteen-storey, operational), and two fourty-storey towers (non-operational) – and a shopping mall comprising area of one million square feet.
Mr. Ejaz further said, “Property ownership makes the costing of banking products a big challenge. Converting banks’ holdings in real estate into publicly tradable unites through REITs will benefit them Greatly. Banks are waiting for the first REIT transaction to take place before deciding their future course of action.”