TPL REIT Fund-I Public Subscription Begins Today on Pakistan Stock Exchange
Karachi, May 2, 2024 – TPL REIT Management Company Limited, a fully owned subsidiary of TPL Properties Limited, proudly announces the commencement of the public subscription for TPL REIT Fund-I today. This significant event will continue through May 3, 2024, marking a pivotal moment in Pakistan’s real estate investment trust landscape.
TPl REIT Offer Details:
- Base Offer: 22.94 million units, representing 1.25% of the total REIT scheme, with a face value of Rs 10 per unit.
- Green Shoe Option: Up to an additional 22.39 million units, accounting for another 1.22% of the scheme.
- Subscription Price: Rs 17.59 per unit, matching the fund’s net asset value (NAV).
- Potential Funds Raised: Rs 403 million to Rs 797 million, depending on the green shoe option’s uptake.
Objectives of the Offer:
- REIT Regulation Compliance: Ensures adherence to Regulation 7, mandating a listing within three years of the financial close or transfer of real estate, whichever is later. The financial close was declared on June 24, 2022.
- Attracting Foreign Investment: Addresses the growing interest from foreign investors in the TPL REIT.
- Price Discovery: Facilitates market-driven pricing through quarterly NAV updates on the Pakistan Stock Exchange, aiding investor portfolios that are marked to market.
Innovative Investment Opportunity:
- TPL REIT Fund I is Pakistan’s inaugural and largest hybrid Shariah-compliant REIT, embodying a master-feeder fund structure under the stringent REIT Regulations.
- Current investments include three projects: Mangrove, One Hoshang, and Technology Park.
Strategic and Anchor Investments:
- TPL Properties, as the strategic investor, contributed non-cash real estate assets valued at Rs7.1 billion.
- Eight commercial banks, serving as anchor investors, infused a collective cash equity contribution of Rs11.25 billion.
Market Position:
- Unique in the market as a perpetual, hybrid REIT with a substantial developmental component.
- Direct comparison with finite-life developmental REITs such as Globe Residency (GRR), which trades at a 13% premium over its NAV.
Executive Remarks:
Ali Asgher, CEO of TPL REIT Fund I, expressed optimism about the IPO’s prospects, highlighting the structured approach to meeting investor needs and regulatory requirements.
Farhan Khan, CEO of NBFC Advisory & Investment Network, commented on the launch, stating, “The introduction of TPL REIT Fund-I is a positive development for Pakistan’s REIT sector, offering innovative investment solutions compliant with Shariah principles. This initiative not only promotes the structured growth of real estate investments in Pakistan but also aligns with global investment standards, attracting both local and international investors.”
Contact Information:
Public Relations, NBFC Advisory and Investment Network
Email: relations@nbfc.pk
Phone: +92-321-4335661
