Public subscription for the initial public offering of TPL REIT Fund I has commenced, the lead manager to the listing Next Capital Limited told the main bourse on Thursday.
The subscription will remain open till the end of May 3, 2024 (5 PM for physical applications and midnight for e-IPO), with the Fund selling 1.25 percent (22.94 million) units at Rs. 17.59 per unit to raise Rs. 403 million.
TPL REIT is created under Master-Feeder Fund Structure and is formed as a trust under REIT Regulations in Pakistan
TPL REIT Fund I has currently invested in three projects, namely Mangrove, One Hoshang, and Technology Park, according to Topline Securities.
The initial REIT size is Rs. 18.35 billion, out of which 61 percent is held by the Anchor Investors and 39 percent by TPL Properties.
Topline says the purpose of the sale offer is to comply with REIT regulations, attract foreign investment, and discover the unit price.
To highlight, TPL Properties is the Strategic Investor in the TPL REIT scheme, and eight commercial banks are the Anchor Investors. The Strategic Investor made a non-cash contribution of real estate assets into the REIT Scheme, valued at Rs. 7.1 billion. The Anchor Investors made a collective cash equity contribution of Rs. 11.25 billion into the REIT Scheme.
TPL Properties is a reputable and corporatized Real Estate company in Pakistan, listed on the stock exchange, providing a one-stop solution for real estate development, facility management, and investment.
Currently, unitholders of the REIT scheme consist of TPL. Properties and eight commercial banks. Post IPO as per the base offer 1.25 percent of shareholding will be transferred to the General Public with existing unitholders’ holding reducing on a pro-rata basis.
Price Comparison: The company is launching an offer for sale equal to its NAV value of Rs. 17.59/share. As per the prospectus, there are no direct competitors of TPL REIT because it’s a perpetual and Hybrid REIT, with having substantial developmental component. However, this is highlighted that a finite-life developmental REIT called Globe Residency (GRR) is trading at a premium of 13 percent of its NAV value.
