In a groundbreaking achievement within Pakistan’s real estate sector, Zameen.com, the nation’s largest real estate enterprise, has successfully registered Punjab’s inaugural Real Estate Investment Trust (REIT) under the banner of Zameen Developments.
This milestone comes hand in hand with the introduction of “Zameen Five,” a REIT poised to fund five premium real estate ventures in Lahore. Investors now have the opportunity to be part of the growth journey of Zameen Developments’ contemporary vertical projects: Zameen Quadrangle (Gulberg), Zameen Aurum (Gulberg), Zameen Neo (Gulberg), Zameen Phoenix (Main Canal Bank Road), and Zameen Jade (Sukh Chayn Gardens).
Zameen Five REIT pledges lucrative returns for investors in the form of dividends upon the successful completion and operation of each project within the trust. As vertical development continues to gain momentum in Lahore and other cities, the real estate sector has emerged as a vital contributor to the economy, with Gulberg alone witnessing over 70% capital appreciation over the past two years.
With the launch of Zameen Five, savvy property investors can now construct a more diversified and secure portfolio. This REIT, established under the REIT Regulations of 2022 and registered under the Punjab Trusts Act of 2020, has appointed the Central Depository Company (CDC) as the trustee to ensure complete transparency.
Moreover, reputable institutions like Savills Pakistan and MYK Associates, approved valuers by the Pakistan Banks’ Association (PBA), have been assessing the trust’s progress. The Pakistan Credit Rating Agency (PACRA) is in the process of rating the fund. “KPMG,” one of the globally recognized ‘Big 4’ firms providing audit, tax, and advisory services, has been appointed as the auditing body. Additionally, KTrade has been engaged as the financial advisor and will assist in attracting investors. The involvement of these esteemed institutions further solidifies the credibility of Zameen Five REIT, ensuring efficient operations and conveying the authenticity and transparency that Zameen aspires to offer.
What is a REIT, and how does it streamline real estate financing compared to traditional methods?
REITs are internationally recognized investment vehicles that pool funds from investors and allocate them to real estate projects. While relatively underutilized in Pakistan, REITs provide an avenue for public or private shareholders to gain ownership in real estate projects, making them a valuable diversification tool globally. One of the most enticing features of a REIT is that individual investors can profit from real estate ventures without the need to directly own, operate, or finance properties.
Benefits of Zameen Five REIT for Investors
Investing in Zameen Five offers numerous advantages for investors looking to manage risk and enhance their portfolios. The most appealing benefit is the tax exemption on profits generated through this investment trust. Furthermore, due to the high demand for quality housing in Lahore’s prominent neighborhoods, Zameen Developments’ strategically located projects promise appreciating income over time.
Additionally, investing in this REIT provides individuals access to institutional-quality assets that might otherwise be out of reach. REITs offer a reliable source of income through regular and scheduled cash flows, making them particularly appealing to those seeking consistent returns.
Benefits of Zameen Five REIT for Property Buyers
Buyers investing in projects listed under Zameen Five will enjoy several advantages that have not been fully explored. Most notably, they can avoid the common problem of delayed project delivery, a significant concern for property buyers in Pakistan. This issue is effectively resolved thanks to the accelerated development process driven by the reliable availability of funds—a feature not typically found in traditional property ventures.
Zameen 360˚ – A Comprehensive Solution for Real Estate
Zameen has become a household name in Pakistan by revolutionizing the traditional property business. In line with its ambition to develop the national real estate sector into a thriving economic driver, the company introduces “Zameen 360˚.” Zameen has evolved from being an online portal to a one-stop solution that covers all aspects of real estate management. This includes land acquisition, concept development, project insurance, pre-feasibility studies, design and architecture, project approvals, management, marketing, REIT modeling and registration, trust deed registration, financial close, RMC compliance, fund monitoring, and facility management.
As Zameen.com paves the way for the digitalization and data-driven future of the property business, these benefits extend to allied sectors as well. With more vertical projects addressing housing constraints, Zameen Developments has earned the trust of clients by successfully delivering its first project, Zameen Opal, as promised.
In summary, the real estate industry is undergoing an exciting transformation with the entry of Zameen.com, a renowned firm, into the realm of REITs. This innovative investment opportunity is opening doors for investors to access substantial exposure and the potential for impressive returns.