Real Estate Investment Trust Regulations, 2022
Real Estate Investment Trust Regulations, 2022 (“REITS Regulations”) are made by Security Exchange Commission of Pakistan (“SECP”) in exercise of the powers conferred by sub-section (2) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984) vide notification No. S.R.O 1766(I)/2022 dated September 26, 2022. The Real Estate Investment Trust Regulations, 2015 were repealed.
The REIT Management Company (the “RMC”) is a Non-Banking Financing Company (“NBFC”) licensed by SECP to carry out REIT Management Services. An RMC intending to undertake REIT Management Services shall have paid-up capital of not less than fifty (50) million rupees. The RMC is incorporated under the provisions of Companies Ordinance, 1984 read with the provisions of the NBFC Rules. The REITS Regulations deal with RMC eligibility requirements, REIT Management Services, types of REIT structure and REIT schemes. The REIT can be structured through Direct Investment or Special Purpose Vehicle (SPV). An RMC can launch any REIT Scheme or as a combination of a REIT Scheme. REIT Project shall be within the territorial jurisdiction of the Islamic Republic of Pakistan.
REIT is an alternative asset class in the capital market and provides transparency to the real estate sector in the form of comprehensive disclosures and accountability through a trust mechanism engrained in the REIT Regulations. REITs provide an additional product choice to retail investors and added flexibility to investment managers.
