PACRA assigns Preliminary rating to Indus DC REIT Scheme

The rating of Indus DC REIT Scheme (the “Fund”) reflects its early-stage development profile along with the sponsor strength and institutional support of the Master Group of Industries (“MGI”), a diversified conglomerate operating across multiple sectors in Pakistan. The Fund is structured as a Rental REIT Scheme under the REIT Regulations, 2022 and will be managed by IMM REIT Management Company Limited (the “RMC”), which is also managing a REIT Project in Multan under a REIT named as IMM Project One development REIT, reflecting relevant sector experience. The RMC benefits from an experienced management team and is owned by Mascon Private Limited, Sheraz Jehangir Monnoo, and Khizar Ayub Izhar. The Fund has an initial size of PKR 4.9 billion, fully committed by three strategic investors—NM Holding (Pvt.) Limited, Nadeem Malik Holdings (Pvt.) Limited, and Najeeb Holdings (Pvt.) Limited—each contributing PKR 1.6 billion, representing an equal one-third stake. Collectively, the strategic investors will maintain at least 25% of the units in blocked accounts with the Trustee, in line with regulatory requirements, reflecting continued sponsor commitment. The Fund is positioned within Pakistan’s emerging data centre landscape, which is witnessing increasing demand driven by fintech expansion, e-commerce growth, cloud adoption, IT exports, and government digitization initiatives. Key industry participants and competitors include Data Vault Pakistan, Jazz Digital Park, Multinet Pakistan Pvt Limited, PTCL Data Centres, and Nayatel Data Centre facilities. Regulatory support, including frameworks issued by the State Bank of Pakistan on cloud outsourcing and broader digital transformation policies, is expected to further encourage localized data hosting and infrastructure development. In this context, the Fund proposes the development of a Tier-III certified data centre located at Astra Block, Nawaz Sharif IT City (NSIT), Lahore, Punjab, within an emerging technology ecosystem. The site has been acquired from the Punjab Central Business District Development Authority (“PCBDDA”), supporting long-term project viability. The total project cost is estimated at approximately PKR 7 billion, of which PKR 4.9 billion will be funded through sponsor equity, to be deployed on a need basis aligned with project execution. A 2-acre land parcel has already been acquired at a cost of PKR 480 million, fully funded through project equity, which will serve as the base for the proposed infrastructure. Any additional land requirement will be addressed as needed. The proposed facility is expected to generate recurring rental income through leasing of data centre space, including cloud racks and related infrastructure, to corporate and technology clients. Construction is expected to be completed within 12 months from commencement, while engineering and development approvals remain in process. The Indus DC REIT Scheme is intended to be listed on the Pakistan Stock Exchange (“PSX”) in accordance with applicable REIT regulations. The project is targeting financial close by June 2026. Prior to listing, units with a par value of PKR 10 will be offered via private placement to accredited investors, expected to augment the fund size ahead of the initial public offering (IPO).
Rating movement will depend on timely land acquisition, construction progress, regulatory compliance, and the Fund's ability to achieve and sustain planned rental occupancy and cash flow targets.

About the Entity
IMM REIT Management Company Limited was incorporated on 09 May 2022 as a public limited company under the Companies Act, 2017. The Company was licensed on 13 July 2022 by the Securities and Exchange Commission of Pakistan (SECP) to provide REIT Management Services as a Non-Banking Finance Company (NBFC). The majority shareholding in IMM RMC is held by the Master Group through Mascon Private Limited, a wholly owned subsidiary of the Master Group of Industries, which holds 50% of the total shares of the RMC. The remaining 50% shares are held equally by Mr. Sheraz Jehangir Monnoo and Mr. Khizar Ayub Izhar, each holding a 25% stake in the Company. The Board of Directors of IMM RMC comprises six professionals, including Mr. Rumman Arshad Dar, who serves as the Chief Executive Officer (CEO).