South Asia’s first Real Estate Investment Trust (REIT) has been listed on Friday at the Karachi Stock Exchange (KSE) and Lahore Stock Exchange (LSE) which had already been oversubscribed with the book runner receiving bids for Rs 7.14 billion against the offer of Rs 4.17 billion in initial public offer held on June 08-09.
Arif Habib Dolmen REIT Management Limited is a joint venture between the Arif Habib Group and the Dolmen Group. SECP Chairman M Zafar-ul-Haq Hijazi as a chief guest initiated the listing of REIT at the event rang the Gong at Karachi Stock Exchange (KSE).
On the occasion, the SECP chairman SECP said: “Dolmen City REIT is the first REIT in South Asia and its listing calls for the accreditation of a new sector ‘Real Estate Investment Trust’ in KSE’s sector classification which is an achievement for everyone involved.
He said the addition of this new sector allows investors a fresh avenue of safe investment which is also accessible to smaller investors. He congratulated Arif Habib Dolmen REIT Management Limited and the Karachi Stock Exchange on this momentous occasion.
He also added that the SECP would continue to play an effective role for the development of Pakistan’s capital markets and encourage innovative products which will broaden investment opportunities. The SECP will also enforce strict regulations to safeguard the public interest.
Dolmen City REIT is a closed-ended, Listed Shariah compliant Rental REIT which offers investors to become unit holders of two component of the Dolmen City project, Dolmen Mall Clifton and The Harbor Front. Book building portion of the IPO took place on the 8th and 9th of June and was heavily oversubscribed with the book runner receiving bids for Rs 7.14 billion against the offer of Rs 4.17 billion. The general public participated in the IPO on the 12th of June. The properties will generate rental income that will be distributed by the REIT scheme among unit holders in the shape of dividends. Any possible appreciation in the value of the property will be an added benefit.
Also present at the ceremony were Nauman K Dar, President & CEO, Habib Bank Limited, Syed Ahmed Iqbal Ashraf, President, National Bank of Pakistan, Irfan Siddiqui, President & CEO, Meezan Bank Limited, Hasan A Bilgrami, President & CEO, BankIslami Pakistan Limited and executives of numerous banks.
Lahore Stock Exchange:
The Lahore Stock Exchange (LSE) has also approved formal listing and quotation of Dolmen City REIT units, after formalities required under the listing regulations of the exchange were completed.
The LSE notified that trading in the units of Dolmen City REIT will start on the ready board of the exchange from Friday (today) and all transactions taking place shall be settled on T+2 settlement basis from the above mentioned date.
The first settlement date will be June 30, 2015. The market lot of the REIT will be 500 units of Rs 10 each. After the listing of company at the ready board quotation, the number of companies listed at LSE would reach 433. The units of REIT have already been declared eligible security by the Central Depository Company (CDC) and all the transactions will be settled through the NCCPL, which has already assigned company code/security symbol as “DCR”.
The opening price of units of REIT will be Rs 11/unit as determined through book building process.
I hope that REIT graph does not keep going down! Goodness knows Pakistan's real estate market is down already.
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