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Tuesday, 12 July 2011 10:57

The SECP regulations say that each REIT Scheme must be PR2bn / USDS$33m; must be 20% owned by the REIT Management Company / RMC; and distribute 90% of net income as dividends to attain the special REIT tax treatment status.

Pakistan A REIT framework has been introduced in Pakistan in 2008, following the enactment of the Real Estate Investment Trust Regulation by the Securities and Exchange Commission of Pakistan (SECP). REITs in Pakistan are established as closed-ended trusts. The requirements for Pakistan REITs are very similar to those in other Asian REIT markets. For example, Pakistan REITs are also required to distribute not less than 90% of their annual income to unit holders. As long as the 90% minimum distribution obligations are met, Pakistan REITs will be subject to income tax exemption. In addition, the REIT regulations also require that each REIT must have a minimum size of PKR2 billion (US$21 million) and the management company must hold at least 20% in each REIT. In March 2009, the SECP granted permission to two REIT management companies. Among four applications received,f only two were approved, whereas the other two were rejected due to their failure to meet the requirements. The two approved managers were Arif Habib REIT Management Company Ltd. and AKD REIT Management Company Ltd. Both companies have filed a number of REIT schemes with the SECP for its approval.

Source: Prof. Alex Anh Khoi Pham - University of Western Sydney: The Development of REIT Markets in Asia (1/1/2014) - Link.



Last Updated on Sunday, 23 February 2014 14:51