Citi Pharma secures SECP approval for REIT management subsidiary

Citi Pharma Limited has received approval from the Securities and Exchange Commission of Pakistan (SECP) for the reservation of the name “CITI REIT Management Company Limited,” which will be established as a wholly owned subsidiary of the company.

According to a public announcement at the PSX on Thursday, the approval allows Citi Pharma to proceed with the incorporation of the REIT management company and initiate the regulatory process for forming and launching a Real Estate Investment Trust (REIT), subject to required licenses and regulatory clearances.

Under the proposed structure, the company plans to undertake three real estate development projects. The first project is proposed at Hali Road, Lahore, followed by a second development on company-owned land at Khayaban-e-Zafar, Lahore, and a third project near Islamabad International Airport.

The total value of land to be contributed by Citi Pharma as its investment in the proposed REIT management company is estimated at approximately Rs7 billion. The company stated that the valuation will be realised progressively as the projects are initiated and executed.

Citi Pharma will also be entitled to receive its proportionate share of annual dividends from the REIT management company in addition to the value of its land contribution.

The company said further announcements will be made as the incorporation, licensing and launch process progresses.