\nISLAMABAD, Feb 1: The Securities and Exchange Commission of Pakistan (SECP) on Friday notified the Real Estate Investment Trust (REIT) Regulations 2008.\n<\/p>\n
\nThe REIT rules will provide an opportunity to the general public to pool funds for investment in the real estate sector.\n<\/p>\n
\nThe REIT regulations in Pakistan are introduced in a trust structure where the property itself will be vested in the name of the trustee and the REIT Management Company (RMC) will manage the real estate on behalf of the unit holders.\n<\/p>\n
\nThe RMC will have a minimum of 20 per cent stake in the scheme and will receive a management fee for managing the real estate.\n<\/p>\n
\nPeople will be allowed to invest through units of the REIT scheme, which will be listed on stock exchanges.\n<\/p>\n
\nAccording to the REIT regulations, two types of REIT schemes are envisaged in Pakistan \u2014 developmental and rental. One scheme is allowed to carryout only one project at a time.\n<\/p>\n
\nIn a developmental scheme, RMC will construct a project and sell the property afterwards and the sales proceeds will be distributed among the unit holders.\n<\/p>\n
\nIn the rental REIT, RMC will buy a portfolio of properties and rent it out. The unit holders will receive returns through annual dividends out of the rental income.\n<\/p>\n
\nREITs have been provided with a tax exemption, if 90 per cent of the income is being distributed among the unit holders.\n<\/p>\n
\nThe REIT will initially be allowed in Islamabad, Rawalpindi, Karachi, Lahore, Peshawar and Quetta.\n<\/p>\n
\nAccording to the regulations, REIT funds should have a minimum size of Rs5 billion.\n<\/p>\n
\nStarted in 1960\u2019s in the United States, REIT schemes are now available in 15 countries worldwide. Pakistan is the first country in the emerging markets to introduce REIT, said a SECP spokesman.<\/p>\n","protected":false},"excerpt":{"rendered":"
\nISLAMABAD, Feb 1: The Securities and Exchange Commission of Pakistan (SECP) on Friday notified the Real Estate Investment Trust (REIT)<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[],"persona":[],"class_list":["post-3376","post","type-post","status-publish","format-standard"],"acf":[],"yoast_head":"\n