KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has proposed key amendments to the REIT Regulations, 2022, aimed at promoting investment, expanding investor participation and providing greater flexibility to REIT schemes, said a statement on Thursday.
The proposed reforms envisage reducing the real estate income and asset thresholds from 75 per cent to 65 per cent, providing greater flexibility in structuring REIT portfolios and facilitating a broader range of eligible projects. Investment-based REITs would also be allowed to invest in vacant land and plots, subject to applicable requirements.
The reforms will broaden investment opportunities by allowing group-level trusts and employee funds to invest in unlisted REIT schemes, while the borrowing period from sponsors, directors and associated entities will be increased from 24 to 36 months.
The amendments also propose allowing an extension of up to one year for listing of Rental and Investment-based REITs in justified cases, and facilitating RMCs in acquiring property from government entities through legally binding agreements.
Chairperson of the SECP Dr Kabir Ahmed Sidhu said the reforms are aimed at creating a more enabling framework to mobilise long-term capital and broaden investor participation.The draft amendments have been placed for public consultation, with stakeholders invited to submit comments before finalisation.
