The Securities Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) have approved Image REIT for listing, with a target size of Rs. 2,750 million.
Image REIT, managed by Sinolink REIT Management Company Limited, is a Shariah compliant hybrid, perpetual REIT due to be listed on the PSX shortly. Both the PSX and SECP have already approved the prospectus of the entity, which allows the general public/institutions to invest in real estate projects through the stock market.
The target size of Image REIT is Rs. 2,750 million, with Rs. 920 million being raised via IPO and current REIT size at Rs. 1,830 million.
The REIT Fund earns income from two sources: rent from an existing 100% occupied 8 floor commercial building at main Shahrah-e-Faisal, Karachi (Rental REIT); and the sale and rent proceeds of residential cum commercial project at main Tipu Sultan Road, Karachi (Developmental REIT).
The Initial Public Offering of REIT Fund consists of 92,015,467 units, equivalent to 33.36% of the post-IPO paid up units of the REIT Scheme. The IPO is planned to be conducted through a 100% Book Building Method. The units would be offered at a floor price of Rs. 10 per unit (18.36% discount to NAV of Rs. 12.25 as of March 31, 2025) and a price band of up to 40% (i.e. Rs. 14 per unit).
The retail portion of the Issue would consist of 25% of the total Issue size and would be offered to the general public at a strike price to be determined post completion of Book Building process. The IPO proceeds would be fully utilized for the remaining construction and marketing of 11 residential floors of the Developmental REIT project.
The Trustee of Image REIT is Central Depository Company of Pakistan Limited (CDC).