ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 1st Jul, 2021 ) :The Securities and Exchange Commission of Pakistan (SECP) Thursday accorded approval for registration of the first Shariah Compliant Developmental Real Estate Investment Trust (REIT) Scheme in Pakistan under the revamped REIT regulatory framework.
Earlier this year, SECP had significantly revamped the REIT Regulation, 2015, said a press release issued here.
This signifies that the amendments introduced after an exhaustive stakeholder consultation process have proven to act as the much-needed catalyst for the REIT sector.
The REIT sector was previously relatively dormant, with the launch of only one REIT Scheme since 2008.
Amendments to the REIT Regulations in 2015 only yielded launch of one rental REIT Scheme, whereas successive amendments in 2018 could not provide desired outcome of mobilizing further REIT Schemes within the country.
The REIT Scheme envisages investment in un-developed land in Karachi, aiming to uplift the area and develop the real estate, including construction and sale of apartments and commercial units by REIT Management Company for generating income for unit holders.
Pursuant to registration of the REIT Scheme and approval for issuance of units, the REIT Scheme can raise funds through offer of units to Private Investors for acquisition and development of the proposed real estate. Growth in the REITs sector will be led to better documentation, formalization, governance, transparency and investor protection in the real estate sector and provide opportunity to small investors to benefit from growth inthe real estate sector.