The Naya Nazimabad Apartment REIT (NNAR) will offer a 15% stake to investors through an Offer for Sale (OFS) ahead of its planned listing on the Pakistan Stock Exchange (PSX), seeking to broaden its investor base and comply with regulatory listing requirements, according to the offer document.
The closed-end, Shariah-compliant developmental REIT will offer 44.06 million units, representing 15% of its outstanding units, with a face value of PKR 10 per unit.
Under the offering structure, 75% of the units, or 33.05 million, will be offered through a book-building process at a floor price of PKR 18 per unit, with a price band extending to PKR 23 per unit. The remaining 25%, or 11.02 million units, will be offered to retail investors at the strike price determined through book building.
The retail portion of the offer has been fully underwritten by Ismail Iqbal Securities (Private) Limited and Sherman Securities (Private) Limited, the offer document said.
Following the public offering, sponsor Javedan Corporation Limited (JVDC) will reduce its holding to 59% from 74%, while Arif Habib Corporation Limited will retain its 26% stake. Public investors will own the remaining 15% of the REIT.
The REIT's portfolio comprises three real estate assets: seven commercial plots covering about 46,597 square yards in Naya Nazimabad, Karachi; 146 residential and 70 commercial plots in Bankers Avenue Cooperative Housing Society on Bedian Road, Lahore; and 76 retail units in the IT Tower in Gulberg, Lahore.
According to the offer document, the seven commercial plots in Karachi were acquired for PKR 5.82 billion, financed through PKR 2.94 billion in equity and PKR 2.89 billion in Musharaka financing.
The listing is intended to meet the requirements of Regulation 7 of the REIT Regulations, 2022, which requires REIT schemes to list within three years of the transfer of real estate assets or financial close.
The REIT said the listing is expected to strengthen corporate governance through greater oversight by the Pakistan Stock Exchange, improve transparency through the regular publication of its quarterly net asset value (NAV), and attract a broader pool of institutional investors, including mutual funds, pension funds and insurance companies.
The offer document also highlighted a sharp turnaround in the REIT's financial performance. It reported a net profit of PKR 1.22 billion for FY2025, compared with a loss of PKR 587.29 million a year earlier.
Earnings per unit rose to PKR 4.14, while the breakup value increased to PKR 11.98 per unit from PKR 7.84 in FY2024.
Total financing stood at about PKR 8 billion, while the long-term debt-to-equity ratio improved to 2.27x from 2.95x in the previous financial year.
According to the offer document, the increase in unit holders' funds was primarily driven by a change in the accounting estimate for FY2025 related to the carrying value of Musharaka liabilities.
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