TPL REIT secures Rs18.35bn in funding round

TPL REIT Management Company Ltd, a wholly-owned subsidiary of TPL Properties Limited, has successfully secured its first funding round of Rs18.35 billion for its TPL REIT Fund I (Fund), informed the company in its filing to the Pakistan Stock Exchange (PSX) on Thursday, paving way for the REIT to raise its target of Rs80 billion.

"We are pleased to announce that TPL REIT Management Company Ltd (TPL RMC) (a wholly owned subsidiary of TPL Properties Ltd) has successfully secured its first funding round of PKR 18.35 Billion for its TPL REIT Fund I (Fund) with firm investment commitments in place with all initial investors," it said in the PSX notice.

The company added that the “acquisition of the initial three assets (held through Special Purpose Vehicles) from TPL Properties (as the strategic investor in the Fund) against cash consideration and issuance of REIT units is targeted to be completed within next 30 days”.

TPL REIT is the first and largest Shariah-compliant Development Impact REIT Fund in Pakistan and its eventual size is envisaged at Rs80 billion, which will be raised from local and international investors.

Pakistan to see its first set of developmental REITs

The company is capitalising on the real estate development and management expertise of its parent company, TPL Properties Limited and tapping into the gap in Pakistan’s real estate market by launching the first development impact REIT Fund.

Earlier, TPL Properties Limited in its extraordinary general meeting held on March 22, authorised to sell the projects, including HKC (Private) Limited, TPL Technology Zone Phase-1 (Private) Limited and National Management & Consultancy Services (Private) Limited, to TPL REIT Fund I in lieu of units to hold strategic shareholding of at least 35% in the REIT Fund.

Last year, the Securities and Exchange Commission of Pakistan (SECP) approved and registered the REIT Scheme namely DCCL Trustee – TPL REIT Fund I, as a Hybrid REIT scheme.