TPL Properties, an emerging real estate property developer and operator in Pakistan, has signed a Memorandum of Understanding (MOU) with Equitativa, the largest Real Estate Investment Trusts (REIT) manager in the GCC and manager of Emirates REIT, to form a REIT Management Company (RMC) in Pakistan.
Incorporated in 2007 and listed on the Pakistan Stock Exchange in 2016, TPL Properties (TPLP) invests, purchases, develops and builds real estate. TPLP also sells and rents commercial and residential properties. The company develops properties that feature sophisticated sustainable designs, efficient floor plans and first-class amenities for optimum value in functionality, location and cost.
The agreement with Equitativa offers TPLP deep industry know-how and a long track record of establishing and managing successful REITs which are listed on the stock exchange. As a leading regional asset management company, Equitativa is the manager of the largest Shari’a-compliant REIT in the world, Emirates REIT, which is listed on NASDAQ Dubai.
Currently, Equitativa has about USD 2 billion of AUM in the UAE. Equitativa was the first company to establish a REIT in the Gulf Cooperation Council (GCC) countries and in the UAE and is currently the largest REIT Manager in the GCC countries.
Under Equitativa’s management, Emirates REIT became the only REIT from the Middle East and North Africa region to be admitted to the FTSE EPRA/Nareit Global Real Estate Index EMEA region in September. Through this admission to FTSE/Nareit Index, Equitativa has successfully drawn international institutional investors to Emirates REIT.
Together, Equitativa and TPL Properties will launch real estate investment trusts for the first time under JV with foreign RMC in Pakistan, which are expected to fuel growth in real estate investment in the country and provide an opportunity for institutional and retail investors to participate in this new asset class. The agreement marks the first Foreign Direct Investment (FDI) in this sector after the regulations have been amended. The fact that Equitativa is coming to Pakistan demonstrates that the regulations are enabling and attracting investment in this particular sector.
Sylvain Vieujot, Group Chairman of Equitativa, commented “We are pleased to sign this agreement with TPL Properties to establish our first REIT in the country. The idea to expand into emerging markets with REITs allows unique investment opportunities and delivers competitive total returns based on high, steady dividend income and long-term capital appreciation.”
Ali Jameel, CEO of TPL Properties said, “This latest strategic alliance further supports the company’s investment strategy and diversifies TPLP’s property mix by adding a realty fund model. We believe that will enable Pakistan’s reality and capital market to further develop and encourage more REITs to be formed, attracting more local and foreign investment in this sector.”