Citi Pharma Limited (CPHL), a leading Pakistani pharmaceutical company, has announced its expansion into the real estate sector with the establishment of Citi REIT Management Company, a wholly owned subsidiary. This strategic move marks a significant diversification for CPHL, which has traditionally focused on pharmaceutical manufacturing and exports. The development was disclosed in a notice to the Pakistan Stock Exchange (PSX), highlighting the company’s intention to raise funds for real estate projects through the newly formed entity.
The Board of Directors of CPHL has approved the establishment of Citi REIT Management Company, signalling the company’s commitment to venturing into the real estate investment trust (REIT) sector. The approval also includes fundraising initiatives to support various real estate projects under the new subsidiary. This expansion aligns with a broader trend in Pakistan’s corporate landscape, where businesses are increasingly diversifying their portfolios to tap into lucrative investment opportunities beyond their core operations.
In addition to its foray into real estate, CPHL has also outlined major expansions within its pharmaceutical segment. The company’s board has given the green light for the development of a biological plant with dedicated facilities for the production of various types of insulin, including Regular Insulin, Glargine, Lispro, Aspart, Detemir, and Degludec. Additionally, the plant will also focus on the production of GLP-1 receptor agonists, such as Semaglutide and its biosimilars, which are widely used for diabetes and weight management treatments.
Further strengthening its position in the pharmaceutical industry, CPHL has also approved the establishment of a new antibiotic formulation plant. This facility aims to enhance the company’s manufacturing capabilities, ensuring a steady supply of critical medications in the local and international markets. The company is also in discussions with international partners regarding the formation of a joint venture for the development of a hospital, reinforcing its commitment to the healthcare sector.
CPHL has indicated that the proceeds from its Initial Public Offering (IPO) will be utilized to support its pharmaceutical expansion projects. This strategic allocation of funds underscores the company’s focus on strengthening its presence in the healthcare and pharmaceutical sectors while simultaneously exploring new avenues of growth.
The company has been actively expanding its global footprint in recent months. In December 2024, CPHL entered into a strategic partnership with Indonesia’s Mersi Farma to establish Active Pharmaceutical Ingredient (API) manufacturing facilities and expand its nutraceutical market in Indonesia. This partnership is expected to bolster CPHL’s international presence and enhance its production capabilities.
Earlier in September, CPHL commenced exports of nutraceuticals to the United States, further diversifying its revenue streams. In July, the company forged another strategic partnership with India’s Murli Krishna Pharma Private Ltd (MKPL). Under this agreement, MKPL would supply APIs and other pharmaceutical products to CPHL for distribution in the Pakistani market, strengthening the company’s supply chain and expanding its product offerings.
As of now, the Pakistan Stock Exchange (PSX) lists only one Real Estate Investment Trust (REIT): the Dolmen City REIT. Established under a trust deed in January 2015, Dolmen City REIT is managed by Arif Habib Dolmen REIT Management Limited. Despite the regulatory framework for REITs being introduced in Pakistan in 2008 and updated in 2015, the sector has seen limited growth, with Dolmen City REIT remaining the sole listed entity in this category.
With these aggressive expansion plans in both the pharmaceutical and real estate sectors, CPHL is positioning itself as a dynamic player in Pakistan’s corporate landscape. By diversifying its operations and forming key international partnerships, the company is not only reinforcing its presence in the healthcare industry but also seeking new opportunities in real estate and infrastructure development.
