TPL REIT plans to raise $500m through investment trust

Published September 1, 2021
This file photo shows the city of Karachi. — Photo courtesy Sana Agboatwala/File
This file photo shows the city of Karachi. — Photo courtesy Sana Agboatwala/File

KARACHI: A real estate development company in Pakistan has announced plans to raise $500 million through a private investment trust, calling it one of the largest such fundraisings initiative in the country’s history.

According to Ali Jameel, chief executive officer of TPL REIT Management Co, which is targeting to capitalise on the development of construction sector, the company expects to close the deal by June, with an offer of internal rate of return of more than 30 per cent in local currency.

“TPL REIT Management Co is seeking to raise 60pc of the targeted funds from foreign investors, 30pc from domestic investors and the rest from its parent TPL Properties Ltd,” Mr Jameel was quoted as saying by Bloomberg.

He said that construction activity was witnessing rapid growth due to access to finance for both the developer and the buyer, and the trend was expected to continue exponentially over the next couple of years. In addition, he said, the company was up to list the REIT within three years in Pakistan and overseas and the funds would be used to finance three real estate projects, a tech park, a high-end residential building and a gated seafront community.

The company’s website says that TPL Properties Limited was incorporated in Pakistan as a private limited company in February 2007 with principal activities to invest, purchase, develop, sell, lease or dispose real estate assets primarily in the commercial and residential asset classes.

TPL Properties Limited, it says, successfully completed its initial public offering conducted through a Book Building process in June 2016. The company is the real estate development arm of TPL Corp Ltd.

Published in Dawn, September 1st, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...