PACRA assigns Rating to Zameen REIT Management Company Limited

The assigned rating for Zameen REIT Management Company Limited ("Zameen RMC" or the "Company") reflects the presence of an experienced management team. Zameen RMC is the wholly-owned subsidiary of Zameen Developments (Private) Limited which is the associated company of Zameen Media (Private) Limited ("Zameen Media"). Zameen Media was initially engaged in only classifieds business however, later in 2017 Zameen Media expanded into developmental activity through its associated company, namely Zameen Developments (Private) Limited (“Zameen Developments”). The successful backward integration from classifieds business to developmental bodes well to the assigned rating. Now Zameen Media and its associated companies are handling classifieds as well as developmental business activities in Pakistan. The rating is also getting support by the backing of Dubizzle Group Holdings Limited (“Dubizzle Group”), the holding company. Besides Zameen Media, Dubizzle Group is operating customized international classifieds portals primarily in emerging markets across the MENA, South Asia, and Southeast Asia regions under the brand names Bayut, OLX, Zameen.com and Lamudi. Zameen Developments is working on multiple projects in different cities of Pakistan and successfully delivered a Lahore-based project "Zameen Opal" in 2023. While Zameen RMC is in the process of launching the hybrid, Shariah-compliant REIT scheme “Zameen Five REIT”. The fund size is targeted at ~ PKR 2bln out of which PKR 1.5bln has been invested by Dubizzle Group through its subsidiary while ~PKR 500mln is targeted to be invested by a Private Investor. The Fund would be comprised of five projects namely; i) Zameen Aurum ii) Zameen Quadrangle iii) Zameen Neo iv) Zameen Jade and v) Zameen Phoenix which are located at prime locations of Lahore. The land of all the projects is successfully acquired and due diligence of the project lands has been duly conducted. Bank borrowing is expected to be raised. The construction of the projects would be funded by a mix of, advances from customers against sales, to be received over the life of the scheme; equity and bank borrowings. Zameen RMC is proactively mitigating project-related risks by overseeing key activities, such as (i) Monitoring project completion according to milestone-based schedules. (ii) ensuring compliance with investment policy and (iii) getting its decision vetted by the Investment Committee. The Company has implemented a comprehensive risk management policy covering operational, legal, credit, and financial risks to safeguard its stakeholders' interests. Additionally, dedicated special purpose vehicles (SPVs) have been established for the projects to enhance transparency and delineate responsibilities.
The assigned rating takes into account the Company's notable competence in strategic project selection and its thorough approach to risk management practices. Going forward, the successful completion of the REIT Projects will remain imperative to the rating.

About the Entity
Zameen REIT Management Company Limited (the “Company”) was incorporated on 1st Mar 2023 as a public limited company under the Companies Act, 2017. The Company was licensed on 16th May 2023 by SECP to carry out REIT Management Services as an NBFC. The Company is a wholly-owned subsidiary of Zameen Developments (Private) Limited. The board of directors (BoD) of Zameen REIT Management Company Limited comprises of eight experienced professionals including: Adil Ahmad Kamal (CEO), Zeeshan Ali Khan, Mariam Saleem, Maryam Haq and Tanzain Shafqat as the Nominee Directors, and Faiza Iftikhar, Sadiq Ali and Kamran Nasir as the Independent Directors.