SECP, PSX approve Image REIT backed by prime Karachi properties

The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) have approved Image REIT, with a target size of approximately Rs2.75 billion.

According to information received Tuesday, Image REIT (“REIT Scheme”), managed by Sinolink REIT Management Company Ltd. (RMC), is a Shariah-compliant hybrid, perpetual REIT that is planned to be listed on the Pakistan Stock Exchange soon.

The prospectus has been approved by both SECP and PSX. This approval allows the general public and institutions to invest in real estate projects through stock market investments.

The target REIT size is approximately Rs2.75 billion, with about Rs920 million to be raised via initial public offering (IPO). The current REIT size stands at around Rs1.83 billion.

The REIT fund will earn income from rent generated by a fully occupied, eight-floor (including basement and ground) commercial building on Shahrah-e-Faisal, Karachi, and from the sale and rental proceeds of a residential-cum-commercial project on Tipu Sultan Road, Karachi. Both projects are located in upscale areas of the city.

The IPO will consist of 92,015,467 units, representing 33.36 percent of the post-IPO paid-up units of the REIT Scheme. It will be conducted through a 100 percent book-building method.

The units will be offered at a floor price of Rs10 per unit—an 18.36 percent discount to the net asset value (NAV) of Rs12.25 as of March 31, 2025—with a price band of up to 40 percent (i.e., Rs14 per unit).

The retail portion will make up 25 percent of the total issue size and will be offered to the general public at a strike price determined after the completion of the book-building process.

IPO proceeds will be fully utilized for the remaining construction and marketing of 11 residential floors of the Developmental REIT project.

The trustee of Image REIT is the Central Depository Company of Pakistan Ltd. (CDC).