Citi Pharma receives approval to launch real estate subsidiary

Citi Pharma Limited said it has received regulatory approval to establish a wholly owned real estate subsidiary, marking its entry into Pakistan’s real estate investment sector.

In a letter sent to the Pakistan Stock Exchange, the company said the Securities and Exchange Commission of Pakistan had approved the reservation of the name “CITI REIT Management Company Limited”.

“This approval marks a significant milestone in the company’s strategic expansion into the real estate investment sector,” Citi Pharma said in the notice to the exchange.

The company said it will now proceed with the formal incorporation of CITI REIT Management Company as a wholly owned subsidiary and initiate the regulatory process for the formation, registration and launch of a Real Estate Investment Trust, subject to obtaining all required approvals and licenses.

“The establishment of CITI REIT Management Company (Private) Limited reflects the company’s long-term vision to diversify its business portfolio and capitalize on emerging opportunities in Pakistan’s real estate and capital markets,” the letter said.

Under the proposed platform, Citi Pharma plans to undertake three major real estate development projects. The first is planned for Hali Road in Lahore, followed by a second project on the company’s land at Khayaban-e-Zafar, Lahore, and a third on land near Islamabad International Airport.

The company said that, subject to regulatory approvals and adherence todevelopment timelines, the projects are expected to be completed by the end of the first quarter of fiscal year 2026-27.

Citi Pharma said the total value of land to be contributed as its investment in the REIT management company is estimated at about PKR 7 billion (approximately $25 million). The valuation represents the land investment and is expected to be realized progressively as the projects commence and advance.

In addition to recovering the land value, the company said it will be entitled to receive its proportionate share of annual dividends from the REIT management company, “over and above the value of its land contribution,” providing an ongoing return on investment.

The company said further announcements will be made as the process advances.