Pakistan’s first REIT, Dolmen City REIT Oversubscribed

Karachi: Pakistan today saw the successful launch of its first Real Estate Investment Trust – Dolmen City REIT. Book building portion of IPO was heavily oversubscribed. Against the offer of PKR 4.17 billion, the book runner received bids for PKR 7.14 billion. Strike price came at PKR 11. General public can subscribe units in the IPO on June 12, 2015 at the strike price. The price offers an attractive dividend yield of around 9% in the first year, which is expected to grow as REIT realizes rent escalation built into the tenancy agreements.
Dolmen City REIT is a Shariah compliant, perpetual, rental REIT scheme. The REIT asset comprises of Dolmen Mall (Clifton) and The Harbour Front, which are regarded amongst the finest commercial real estate in the Karachi. Dolmen Mall is home to top local and international brands while The Harbour Front, a state of the art office building is the preferred address for top local and multinational companies.
It is indeed a moment of pride for market participants as Pakistan becomes the first country in the region to launch REITs. The success of first REIT opens up avenues for other real estate developers. REIT regulations were first introduced in Pakistan in 2008.***