Amendments to the Real Estate Investment Trust Regulations 2015

The Securities and Exchange Commission of Pakistan amends the Real Estate Investment Trust Regulations 2015 to update definitions, including 'Act', 'Borrowing', and 'Private Investor', and establish eligibility criteria for trustees such as scheduled banks and licensed non-banking finance companies. The amendments mandate that real estate must be located in approved cities, require detailed due diligence and valuation reports, and impose a minimum holding of 25 percent by the Real Estate Management Company and strategic investors. Additionally, the regulations set a unit par value of ten rupees, require listing within three years of financial close, and specify that subscription money must be returned with profit if real estate transfer fails within 90 days.

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GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.- Islamabad, 4th December, 2018 NOTIFICATIONS S.R.O. 1473 (I)/2018.- In exercise of the powers conferred by sub-section (2) of
section 282B of the Companies Ordinance, 1984 (XLVII of 1984), the Securities and Exchange
Commission of Pakistan hereby makes the following amendments to the Real Estate Investment Trust Regulations 2015, the same having been previously published vide S.R.O. 995 (I)/2018, dated August 10, 2018, namely:- In the aforesaid Regulations,-

in regulation 2,-
(i) sub-regulation (1),-
(a) before clause (i), the following new clauses shall be added, namely:- “(ia) “Act” means the Companies Act, 2017(XIX of 2017); (ib) “Borrowing” for the purpose of these Regulations, meansfunds received from financial institutions with an obligation to pay back these funds;”; (b) for clause (i), the following shall be subsituted, namely:- “(i) Business Plan” includes,- (a) a document containing the value of the real estate as determined by the Valuers applying all the approaches as defined in Schedule VI to these Regulations; (b) set of detailed workings (principally driven by the project specific cash flows) determining the viability parameters, business, financial, legal aspects, arrangement of capital for implementation of the plan, possible eventualities defining critical stages, risks and exit strategies; and (c) basis for computing settlement values at various stages of project development and highlighting the percentage of construction cost to be

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Timeline

Amended 1 time · last 2021-11-17

2021-11-17SECPReal Estate Investment Trust (REIT) Regulations-2015 (Consolidated)supersedes

Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works