PACRA Maintains Entity Ratings of TPL Properties Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 17, 2021 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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TPL Properties owned a high-end office building (Centrepoint) in Karachi. The Company entered into a sale agreement with Bank Al Habib to sell its flagship project at a transaction value of PKR 8bln. Thus, rental revenue's contribution towards the topline will not be observed in the upcoming future years as the revenue stream majorly would be dependent on the timely completion of company's current and future development projects. TPL Properties paid-off its entire debt obligations through the cash proceeds received from the sale agreement. The financial risk profile remains adequate; will be supported by additional cashflows expected from new projects.

Some of the related projects are on the cards which might alleviate concerns pertaining to cash flows. Going forward, TPL Properties is pursuing four projects 1) One Hoshang - residential apartments, 2) Logistics Park, 3). Technology Park, 4). Korangi 40 Acres. One Hoshang will comprise luxury residential apartments and advance sale model will be followed for this project. The project previously faced delays owing to ban on high rise...