SECP adds three REITs as Pakistan pushes real estate investment trusts

The Securities and Exchange Commission of Pakistan (SECP) has registered three new Real Estate Investment Trust (REIT) schemes in the month of January, in its continued commitment for fast-track development of the REIT sector.

With two new rental REIT schemes and one new investment-based REIT scheme under the revamped Real Estate Investment Trust Regulations, 2022 (the Regulations), the total number of registered REIT schemes has increased to 28.

Rental REIT schemes are established with the objective of pooling funds to invest in rental real estate projects, whereas investment-based REIT schemes enable investors to invest in a fund that intends to earn capital gains from its real estate investments.

Following the recent approval, the REIT schemes are eligible to raise funds from accredited investors including financial institutions, corporates, insurance companies and high net-worth individuals.

Under the recently amended REIT Regulations which aim to establish clearer timelines to promote early listing and strengthen visibility and positioning of REITs as a viable capital market asset class, rental and investment-based REIT schemes are required to be mandatorily listed within one year of the date of transfer of real estate in the name of the REIT scheme.