Packages Real Estate (Private) Limited ("the Company") was incorporated as a private limited company on March 9, 2006. The Company’s principal objective is to engage in all types of construction activities, as well as the development and management of real estate. Currently, the Company manages two developed real estate projects: Packages Mall and Corporate Offices, both located in Lahore at Shahrah-e-Roomi, P.O. Amer Sidhu. The Company’s registered office is situated at Suite No. 416–422, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi.

The Company was incorporated in 2006 but remained dormant until the commissioning of Packages Mall in 2017, followed by the development of office spaces leased to major corporate clients. The Parent Company, Packages Limited, owns and occupies a land parcel of approximately 100 acres on Walton Road, Lahore, and has leased out 52 acres to the Company to facilitate its commercial real estate activities. Of this, Packages Mall was developed on nearly 30 acres, including 11 acres dedicated to mall areas. Office spaces were constructed on 3 acres, leaving the Company with a significant land bank for future expansion.

The Company’s real estate project, widely known as Packages Mall, is complemented by office spaces leased to Nestlé Pakistan and British American Tobacco (BAT). The mall features approximately 200 retail outlets, a food court hosting 30 international and local restaurant chains, and a multiplex cinema. Currently operating at full capacity with nearly 100% occupancy, the Company is focused on expansion, with development underway to accommodate additional retail outlets. In addition, discussions are ongoing with several corporate clients regarding office space leases. Packages Mall was commissioned in 2017 at an estimated cost of PKR 13 billion, of which PKR 4 billion was financed through equity, PKR 8 billion was secured from financial institutions, and the remaining amount was contributed by the sponsor. As of calendar year 2024, both the sponsor’s loan and the bank financing for the mall have been successfully repaid. Key anchor tenants at the mall include Carrefour, the food court, and the multiplex cinema. Lease agreements vary by tenant; however, most are subject to an annual rental increase of 10%.

The Company is a subsidiary of Packages Limited, which holds a 75.16% stake, while the remaining 24.84% is owned by IGI Investments (Private) Limited.

As part of Packages Limited—the flagship investment holding company of Ali Group, with a legacy of over 65 years—the Company benefits from a solid ownership structure that reflects strong institutional patronage and ensures long-term strategic stability. Since its inception, the Company’s shareholders have remained consistent, demonstrating a shared vision and alignment with the Company’s objectives. This stable and committed ownership has been instrumental in driving the Company’s growth and continues to steer it toward sustained long-term success.

Ali Group is recognized as one of the country's foremost industrial conglomerates, with a diversified portfolio spanning multiple key sectors, including paper and paperboard, packaging, financial institutions, education, and real estate. With a strong legacy built over several decades, the Group has established itself as a prominent player in the industry, upholding standards comparable to top multinational corporations operating in Pakistan. Ali Group’s business strategy is further strengthened by its alliances with international joint ventures, which enhance its holding structure and reinforce its commitment to excellence, innovation, and sustainable growth. Through strategic partnerships and continuous investment in its core industries, the Group has played a pivotal role in shaping Pakistan's industrial landscape, fostering economic development, and creating employment opportunities.

Packages Group showcases its financial strength with a consolidated asset base of approximately PKR 245.3 billion, supported by equity of around PKR 88.3 billion (9MCY25). This strong financial foundation highlights the Group's stability and ability to drive sustained growth and investment.

The Company's Board of Directors comprises seven members, including the Chairman and Chief Executive. The Board includes five non-executive directors, one independent director, and two family members representing the sponsoring family. The non-executive directors are serving executives of associated companies.

The Board of Directors, comprising members with diverse backgrounds and extensive expertise, serves as a key source of oversight and strategic guidance for the management. Each member brings a unique skill set, ensuring a well-balanced and experienced leadership team. The Board is led by Chairman Mr. Syed Hyder Ali, who plays a key role in shaping the Company's strategic direction and also holds directorships in Packages Power (Pvt.) Ltd. and Chem Coats (Pvt.) Ltd. Mr. Khurram Raza Bakhtayari, the sole Executive Director and CEO, oversees operations and strategic decision-making, and holds affiliations with multiple organizations, including Bulleh Shah Packaging (Pvt.) Ltd., IGI Life Insurance Co. Ltd., and Tri-Pack Films Ltd. The Non-Executive Directors comprise Mr. Syed Hyder Ali, who also serves as Chairman of Bulleh Shah Packaging (Pvt.) Ltd. and CEO of Packages Convertor Ltd.; Ms. Syeda Henna Babar Ali, who brings extensive industry expertise; Mr. Syed Aslam Mehdi, who focuses on corporate governance; Mr. Imran Khalid Niazi, affiliated with AJ Holdings, LUMS, and Packages Ltd.; and Mr. Rizwan Ullah Khan, a director at SIA Beverages (Pvt.) Ltd., further strengthening the Board's industry reach.

The Company has established Audit and Investment Committees that enforce policies and procedures to ensure accurate reporting and professionalism. Board meetings are well-organized, with formal minutes recorded for reference.

They have provided management accounts for the year ending December 2025. The audit for the year ending December 2025 is currently in progress. A.F. Ferguson Chartered Accountants & Co., classified in category 'A' by the SBP and having a satisfactory QCR rating, is the external auditor of the Company. They have given an unqualified opinion on the financial statements for the year ending December 2024.

The Company operates under a well-structured organizational framework, primarily divided into two core departments: Operations and Finance. The Operations Department is further subdivided into specialized functions, including Technical, Legal, Supply Chain, Environment, Health & Safety (EHS), Security, Digital Marketing, Leasing, and Floor Operations. The Finance Department manages Project Management, Information Technology (IT), and Internal Audit, playing a critical role in maintaining financial stability and regulatory compliance. Department heads within Operations report to the General Manager (GM) of Operations, while the Finance Department reports directly to the Chief Executive Officer (CEO). Each operational function is led by a qualified and experienced professional, ensuring effective execution, strategic alignment, and smooth coordination across all departments.

With over twenty-five years of experience, Mr. Khurram Raza Bakhtayari serves as the Chief Executive Officer (CEO) of the Company, leading its strategic direction and overseeing operational initiatives. Mr. Ayyaz Zafar, the Chief Financial Officer (CFO), brings more than fourteen years of expertise, with the past eight years dedicated to advancing the Company’s financial strategy, and reports directly to the CEO. Mr. Syed Munzir Hassan, the General Manager (GM) responsible for operations, has over a decade of experience and also reports directly to the CEO. Other key members of the management team include Mr. Mohammad Taha Siddiqui, Manager of Technical; Mr. Muaz Munir, Manager of Supply Chain; and Mr. Waqas Awan, Manager of Leasing. Additionally, department heads overseeing areas such as Security, Digital Operations, Environment, Health & Safety (EHS), Leasing, and Floor Operations report to the GM, Mr. Syed Munzir Hassan. While the management team is relatively new, it is composed of experienced professionals who are instrumental in driving the Company’s growth and ensuring operational efficiency.

The Company has no formal management committees in place; however, management accounts are discussed among senior management to review monthly activities.

Since September 2017, the Company has utilized Oracle 12.2.5 as its enterprise resource planning (ERP) system, implemented by A.F. Ferguson & Co. Reports covering revenues, project costs, marketing, and receivables are generated and submitted to senior management on a daily, weekly, and monthly basis, ensuring informed decision-making and efficient operational oversight.

To enhance operational efficiency, the Internal Audit Function is positioned at the Group level, where it plays a critical role in identifying, assessing, and reporting risks. This structure ensures independent oversight, strengthens internal controls, and supports risk management across the organization. Additionally, the Internal Audit Department plays a crucial role in ensuring efficiency, transparency, and adherence to standard operating procedures within the Company. It conducts thorough evaluations of business processes to identify potential weaknesses, failures, and discrepancies through various tests and analyses. Following these assessments, a comprehensive report summarizing key findings is submitted to the Board of Directors and other stakeholders. Internal audit reports across all departments are well-documented, incorporating management response action plans and follow-ups, with risks categorized based on a structured risk rating mechanism to enhance governance and decision-making.

In FY25, Pakistan’s real estate sector experienced a gradual recovery as the economy stabilized, with revised real GDP growth reaching 3.04–3.09% (up from the initial provisional estimate of 2.68%), supported by sharp disinflation average CPI inflation stood at 4.5–4.7% for the year (July–June), with June 2025 inflation at 3.2% successive monetary easing that brought the State Bank of Pakistan’s policy rate down to 11% by the end of FY25 (further reduced to 10.5% in December 2025 and held steady into early 2026), a relatively stable PKR, and strengthened foreign exchange reserves (SBP holdings rising to $14.51 billion by end-June 2025, with total liquid reserves exceeding $21 billion in early 2026). Government efforts to formalize the economy, broaden the tax base, and support remittances further improved market sentiment. Long-term structural drivers persisted, including rapid urbanization, a young population, and a chronic housing shortage estimated at around 10–12 million units, sustaining underlying demand despite ongoing affordability constraints for end-users. The office segment remained resilient with strong occupancy in premium Grade A buildings due to a continued flight to quality among MNCs and local firms, while co-working, hospitality, and industrial/logistics real estate (particularly warehouses) saw improved demand amid modest manufacturing recovery and e-commerce growth. The residential segment recorded mixed performance, with selective investor activity and moderate price appreciation in major cities (e.g., house prices in Karachi rising around 10.5% YoY as of early 2025), though broader expansion stayed cautious due to affordability pressures. As FY26 unfolds, the market is transitioning toward measured optimism, underpinned by lower borrowing costs relative to prior highs, controlled inflation (hovering in the low-to-mid single digits in late 2025 before modest upticks), improved external buffers, and evolving buyer preferences for modern integrated living. Urban development continues to emphasize energy-efficient designs, enhanced security, and technology-driven solutions, alongside growing interest in mixed-use developments combining residential, commercial, retail, and recreational spaces — particularly in Lahore, Karachi, and Islamabad. The commercial real estate sector is positioned for further expansion through quality leasing and infrastructure improvements, while risks from external shocks (such as global commodity prices and geopolitics) persist. Overall, FY25 marked a transitional year of cautious stabilization for Pakistan’s real estate, shifting from earlier challenges toward gradual recovery supported by macroeconomic improvements and sustained urbanization.

Packages Real Estate Pvt Ltd has significantly strengthened its presence in Pakistan’s retail and commercial real estate sector through its flagship venture, Packages Mall. Strategically located at the company's Lahore site, Packages Mall stands as one of the largest and most prestigious shopping malls in the country, featuring a diverse mix of local and international retail brands, a state-of-the-art food court, and modern entertainment facilities, including cinemas. The mall has positioned itself as a premier shopping and leisure destination, catering to a wide consumer base. Beyond retail, Packages Limited has successfully ventured into commercial real estate, offering premium office spaces leased to multinational corporations (MNCs) and leading local businesses. The company's substantial land bank provides further opportunities for expansion, strengthening its long-term growth prospects. Future developments on this prime real estate could include commercial, residential, or mixed-use projects, ensuring continued value creation. The competitive landscape in Lahore's retail and hospitality sector is evolving, with Emporium Mall by Nishat Group and the recent entry of Dolmen Mall intensifying market competition. Additionally, Nishat Group’s hospitality business, including high-end hotels adjacent to its retail ventures, adds another layer of competition by offering an integrated shopping and lodging experience. Despite this, Packages Mall maintains a distinct advantage due to its strategic location, strong brand portfolio, and comprehensive retail and entertainment offerings, as well as extensive land holdings.

The Company's revenue is derived from a diversified business model spanning three key segments:
License Fee & Rental Income – Primarily generated from leasing commercial spaces within Packages Mall and office rentals.
Service & Management Charges – Comprising fees for managing and maintaining the mall and associated facilities.
Advertisement & Parking Income – Revenue from advertising within the mall premises and parking fees collected from visitors.
The Company has demonstrated consistent revenue growth, with sales increasing from PKR 4,569 million in CY22 to PKR 5,311 million in CY23 and PKR 6,018 million in CY24, reaching PKR 6,413 million in CY25. This represents a CAGR of approximately 12% over the four years. This growth is driven by higher occupancy rates, the opening of new outlets, and rental escalations in response to inflationary pressures, reflecting strong demand for commercial spaces and sustained growth in the Company’s real estate portfolio.

The Company's profitability metrics have exhibited improvement, with gross profit margin increasing to 53.0% in CY25 from 49.4% in CY24. Operating profit margin rose to 43.1% in CY25 from 40.6% in CY24. Similarly, net profit margin improved to 13.4% in CY25 from 10.6% in CY24. This trend indicates enhanced operational efficiency and sustained profitability growth.

Packages Real Estate Company, with Packages Mall and premium office spaces in its portfolio, is well-positioned for long-term sustainability. The mall's diverse retail mix, entertainment facilities, and strategic location ensure steady footfall and consistent rental income, making it a resilient asset despite market fluctuations. Additionally, the leasing of high-quality office spaces to multinational corporations and local enterprises provides stable revenue streams. The Company's substantial land bank offers future growth opportunities, allowing for potential expansion into commercial, residential, or mixed-use developments. By maintaining a diversified and adaptive real estate strategy, the Company ensures sustained profitability and market competitiveness in the evolving real estate landscape.

The Company manages its working capital requirements through a mix of internal cash generation and short-term borrowings from banks. The total short-term borrowing limit stands at PKR 3.5 billion, with PKR 2,064 million utilized as of February 28, 2026, representing approximately 59% utilization. Given the nature of its business, the Company does not require inventory holdings, and its working capital primarily revolves around trade receivables. Over the years, it has maintained a strong position in working capital management through effective administration of debtors and creditors. As a result, the Company's receivable days remained stable at 12 days in CY25, ensuring efficient cash flow management. Meanwhile, trade payable days stood at 11 days in CY25, reflecting a controlled payment cycle that supports liquidity without straining supplier relationships.

The Company's Free Cash Flows from Operations (FCFO) reflects a sustained positive trend, standing at PKR 2,447 million in CY25 (CY24: PKR 2,362 million; CY23: PKR 2,323 million). As a result, the EBITDA / Finance Cost ratio improved to 3.6x in CY25 from 2.0x in CY24 and 2.1x in CY23. This improvement indicates a strengthened ability to service debt obligations from operating cash flows.

The Company remains in a moderate to high leveraged zone, with a leverage ratio (Total Borrowings / Total Borrowings + Shareholders' Equity) of 59.4% in CY25, showing improvement from 65.2% in CY24 and 66.7% in CY23. The short-term debt component constituted 28.7% of the total debt portfolio in CY25, compared to 34.4% in CY24 and 29.5% in CY23. The Company's financial position has strengthened, driven by a notable improvement in accumulated profits, which recovered from negative PKR 943 million in CY21 to positive territory, reaching PKR 4,732 million in shareholders' equity by CY25. This turnaround is attributed to higher profitability, with net profit rising from PKR 285 million in CY22 to PKR 224 million in CY23, PKR 638 million in CY24, and PKR 860 million in CY25. The equity base expanded to PKR 4,732 million in CY25 from PKR 3,616 million in CY22, contributing to an improved leverage ratio. Meanwhile, total borrowings decreased to PKR 6,923 million in CY25 from PKR 7,910 million in CY24 and PKR 7,783 million in CY22, reflecting the Company's focus on financial sustainability and gradual deleveraging.