Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has commenced the final round of public consultations on draft amendments to the Real Estate Investment Trust (REIT) Regulations 2015, according to a news source published on 9th April.
The amendments intend to provide a little stimulation to kickstart the development of Pakistan’s real estate sector via the REIT model. The aforementioned changes to the regulation aim to eliminate key hindrances highlighted by real estate investors and introduce more flexibility and efficiency.
Additionally, aside from revision of the conventional REIT model (rental, hybrid and developmental), the amendments will provide viable capital market-oriented investment and financial solutions to meet the demand of the infrastructure in the country. Furthermore, a new model which would enable launch of REITs for public private partnership (PPP) based projects pertaining to infrastructure development are to be introduced as well.
The SECP website has placed the notification for the draft amendments on the official website, inviting comments from the public for a period of fourteen days. Upon receiving assent, the changes are expected to accelerate the growth of REIT sector. The SECP also notified its intention to arrange a virtual session in order to provide clarifications and more information regarding the proposals.