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IMM REIT Management Company Limited Earns Initial Rating for Real Estate Ventures

Karachi, IMM REIT Management Company Limited (“IMM RMC”), a burgeoning entity in Pakistan’s real estate investment sector, has received its initial rating from The Pakistan Credit Rating Agency Limited, reflecting the strength of its experienced management team and robust ownership structure.

According to Pakistan Credit Rating Agency Limited, IMM RMC’s rating is underpinned by the expertise of its management team and the strategic involvement of its owners. The Company is jointly owned by Mascon Private Limited, Mr. Sheraz Jehangir Monnoo, and Mr. Khizar Ayub Izhar. Mascon Pvt. Ltd., a subsidiary of the Master Group, is intent on establishing a strong foothold in the real estate sector, leveraging the Master Group’s extensive experience across various industries. The Monnoo Group, known for its 12 Textile units, Agricultural Farms, and research units, brings in-depth knowledge in agricultural products. The Izhar Group of Industries, operating in Real Estate, Construction, and Technology, has a proven track record in construction, evidenced by successful projects like Dream Gardens in Lahore and Multan, Dream Avenue Lahore, and Mannan Town Faisalabad.

IMM RMC is currently preparing to launch its first non-PPP Real Estate Investment Trust (REIT) scheme, the “IMM Project One Developmental REIT Scheme”, expected in the first quarter of 2024. The fund size, depending on the land acquisition strategy, is anticipated to be between PKR 3-7 billion. A strategic partner, Mr. Mazhar Iqbal, will own 50% of the units, while the rest will be held by Master Textile Mills Ltd, Mr. Sheraz Jehangir Monnoo, and Mr. Khizar Ayub Izhar.

The company is actively acquiring land for the “IMM Project One (Pvt) Ltd”, a special purpose vehicle (SPV) for this project, in several phases. Approximately 421 acres of the total 790 acres required for the project are to be acquired through cash payments, while about 369 acres will be exchanged for developed land files with respective landowners. To date, the SPV has acquired around 143 acres, with the acquisition of the remaining 278 acres expected to complete by May 2026. This innovative financial structure, combining land and equity contributions, sets the stage for the successful launch and development of IMM Project One.

The rating also acknowledges IMM RMC’s ability to select strategic projects and its comprehensive approach to risk management. The future success of the REIT projects will be crucial to maintaining and potentially enhancing this rating.

IMM RMC was established on May 9, 2022, as a private public limited company and was licensed on July 13, 2022, by the Securities and Exchange Commission of Pakistan (SECP) to provide REIT management services. The majority stake in IMM RMC is held by the Master Group through Mascon Private Limited, with Mr. Sheraz Jehangir Monnoo and Mr. Khizar Ayub Izhar each holding 25% of the shares. The board of directors of IMM RMC comprises six experienced professionals, including the CEO, Mr. Rumman A. Dar.

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