SECP tells REITs: REIT Scheme shall be listed in three years of financial close

The Securities and Exchange Commission of Pakistan (SECP) has directed Real Estate Investment Trusts (REITs) that the REIT Scheme shall be listed on stock exchange, within a maximum period of three years from the date of financial close.
The SECP has amended Real Estate Investment Trust Regulations 2015 on Wednesday.
According to the revised regulations, the Commission may, if satisfied, register the REIT scheme with or without any conditions. REIT Scheme shall be listed on stock exchange. Provided, that the number of private investors shall not exceed 50 before listing.
The RMC may solicit funds from pre- Initial Public Offering (IPO) investors or private investors, after sharing business plan and valuation report where applicable. The RMC shall not solicit funds from Pre IPO investors or private investors before registration of REIT scheme.
An REIT management company (RMC) shall not offer units of a REIT scheme for subscription to public unless the Offering document has been approved by the Commission and the Commission may approve the Offering Document, with or without any conditions. In case of offer of units to Private Investors only, RMC shall submit Information Memorandum to the Commission 15 days before such offer.
An RMC shall disclose all material information in the offering document or Information Memorandum as specified respectively including values of real estate, where applicable. At the time of listing, RMC shall ensure that the size of the REIT fund and public offer of units are in line with the requirements prescribed in the listing regulations of the stock exchange.
The SECP said that per value of a unit of a REIT scheme shall be ten rupees each.
An RMC shall keep subscription money received from IPO or Private Investors in an account in the name of Trustee of the REIT scheme. An RMC shall issue units against cash except those issued in lieu of Real Estate.
The SECP said that the RMC shall hold or arrange through Strategic Investor, minimum 25 percent units of the REIT Scheme in an account marked as blocked throughout the life of the REIT Scheme till its winding up and these units shall not be sold, transferred or encumbered, provided that the same can be transferred with the relevant conditions, as specified in these Regulations. In case, there are more than one Strategic Investors, each one of them shall hold not less than five percent (5 percent) units of the REIT Scheme at all times. Provided that the strategic investor and the RMC may, after three years of launch of REIT Scheme, transfer their holding of the REIT Scheme to another Strategic Investor with the approval of the Commission, the SECP added.