Launch Partners

Tuesday, June 18, 2024

Launch Partners

New Islamic REIT fund focused on sustainable assets in Pakistan opens for subscriptions

Shariah compliant TPL REIT Fund I, which aims to generate returns by developing, selling and managing sustainable real estate assets in Pakistan, has entered into unit subscription agreements with initial investors for its first funding round worth PKR18.35 billion (US$96.34 million).

“As a next step, (the) fund will start the acquisition of the initial three assets (held through SPVs) from TPL Properties (as the strategic investor in the fund) against cash consideration and issuance of REIT units for which required approvals are in place,” TPL Properties, the parent of fund manager TPL REIT Management Company, said.

Proceeds from the first funding round will be used to finance a technology park; a community that includes residential apartment towers and commercial assets located at the waterfront; and a premium residential tower and showrooms.

TPL REIT Fund I received approval from the Securities and Exchange Commission of Pakistan in December 2021, with an initial size of PKR18.35 billion to be raised from local investors. The fund has set an ultimate target size of PKR80 billion (US$420 million), to be raised from both local and international investors.

In March this year, Bank of Punjab signed an agreement committing PKR2 billion (US$10.5 million), making it one of the major local investors in the REIT fund, which itself is touted as the first and largest Islamic development impact REIT fund in the country.
The Islamic REIT landscape in Pakistan has been busy the past couple of years; last year, it saw the launch of its first-ever Islamic developmental REIT scheme managed by Arif Habib.

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