Pakistan’s Ijara Capital Partners Limited has constituted a new private equity fund to raise Rs. 5 billion (US$ 29 million) for construction and its related real estate projects.
The development was reported by Bloomberg, and the CEO of Ijara Capital, Farrukh Ansari, said that the proposed ‘Tameer Fund’ will be obtained and invested in various real estate projects within six months, with an internal rate of return between 25 and 30 percent.
Discussing these developments with Bloomberg at his Karachi office, Farrukh Ansari commented, “Real estate is a very attractive sector in terms of returns. There are not a lot of investment instruments to invest in transparently in Pakistan”.
He remarked that a slew of foreign investors have expressed interest in Tameer Fund, and the money raised will go toward property acquisition and development.
Pakistan’s real estate industry has had a good deal of activity after Prime Minister Imran Khan chose construction to revive economic growth during the early days of the pandemic. Consequently, the local real estate industry has had a whirlwind of activity in a short period of time.
The government is now providing low-cost housing subsidies, and banks have been required to boost their exposure to the industry to five percent of their loan portfolios. Last year, in particular, was the first time Pakistan had numerous real estate investment trusts (REIT) listings.
