Govt-focused real estate and construction sector gaining appreciable progress.

Byline: Khalil Ahmed

* Spurge of real estate activities started and buyers will get new products and options soon

* REIT model for managing the real estate business is gaining traction albeit very slowly

Interview with Muhammad Ejaz - Chief Executive, Arif Habib Dolmen REIT Management Limited

PAGE: Tell me something about yourself and Arif Habib Dolmen REIT Management Limited, please:

Muhammad Ejaz: I feel privileged to introduce myself as the founding Chief Executive of Arif Habib Dolmen REIT Management Limited, which launched South Asia's first listed REIT fund in 2015. Prior to joining Arif Habib Group in August 2008, I worked with several financial institutions primarily in the area of Treasury and Corporate/Investment banking. I studied Computer Science at FAST ICS and did my MBA in Banking and Finance from IBA, Karachi where I am a visiting faculty member as well.

Arif Habib Dolmen REIT Management Limited was established as a Non-Banking Finance Company 'NBFC with the objective to launch REIT Schemes and provide REIT Management Services. It was incorporated as a public limited (non-listed) company in 2009. The combined experience of its Management and leadership from the Sponsors and Board of Directors provides a clear distinction to the company. It aspires to develop the REIT industry in Pakistan with multiple projects in the pipeline. The company is a 50:50 Joint Venture between Arif Habib Group and Dolmen Group. The joint ownership provides financial and operational synergies to conduct effective REIT Management services.

PAGE: How would you comment on the REIT management business in Pakistan?

Muhammad Ejaz: REITs were introduced in Pakistan with the objective of:

1. Allowing small savers to invest in real estate assets

2. Bringing a new asset class to the capital market and

3. Formalizing the real estate business, which is overwhelmingly dominated by the informal sector.

   Pakistan became the first South Asian country to introduce listed REIT in 2015. India joined the league much later in 2019. REIT model for managing the real estate business is gaining traction albeit very slowly. There are two main reasons for this slow progress:

1. Lack of documentation in the sector has bred a business culture that will only transform gradually

2. Relative tax disadvantage especially for small and medium scale developers

   SECP is playing a proactive role and is in constant contact with market participants to amend the regulations to make these more...