TPL REIT Raises Rs18.3bn

KARACHI: TPL Properties Ltd said on Wednesday its wholly-owned subsidiary, TPL REIT Management Company Ltd, has signed unit subscription agreements with “initial investors” in its first funding round of Rs18.35 billion for TPL REIT Fund I.

TPL REIT Management will spend the raised funds for buying and developing three commercial and residential properties in Karachi which — upon completion in three years — will generate returns for investors.

TPL REIT Fund I will now start the acquisition of the three assets — currently held through special purpose vehicles — from TPL Properties against a cash consideration and the issuance of REIT units.

The money is being generated via a real estate investment trust or REIT, which operates like any other company but offers more transparency to investors. All assets under a REIT are controlled by a trustee instead of its majority shareholder. The entity must list on the stock exchange within three years of its financial close, thus letting small investors take exposure to an otherwise capital-intensive real estate market.

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