REIT fund seeks Rs403m investment via IPO

TPL Real Estate Investment Trust (REIT) Fund-I is scheduled to offer a minimum of 1.25% (22.94 million) units at Rs17.59 per unit to the general public with the aim of raising Rs403 million in the ongoing week at the Pakistan Stock Exchange (PSX). Fund runners may opt for selling an additional 1.22% (22.39 million) units through unlocking a green shoe option, taking total fund raising to a maximum of Rs797 million through the two-day initial public offering (IPO). In brief comments on the offer for sale, Topline Research said TPL REIT Management Company Limited (TPL RMC), a 100% subsidiary of TPL Properties, had launched “Pakistan’s first and largest hybrid Shariah-compliant REIT namely TPL REIT Fund-I.” REIT Fund-I has invested in three projects including Mangrove, One Hoshang and Technology Park. Currently, unit holders of the REIT scheme consist of TPL Properties and eight commercial banks. The initial REIT size is Rs18.35 billion. Of this, 61% is held by anchor investors and 39% by TPL Properties. TPL Properties is a strategic investor and the eight commercial banks are anchor investors.