PACRA maintains the rating of IMM REIT Management Company Limited

The assigned rating for IMM REIT Management Company Limited ("RMC" or the “Company”) reflects the presence of an experienced management team. IMM RMC is owned by i) Mascon Private Limited, ii) Mr. Sheraz Jehangir Monnoo, and iii) Mr. Khizar Ayub Izhar. Mascon Pvt. Ltd. has set its sights on making a mark in the Real Estate Sector coupled with Master Group’s vast experience in various industries across the country. Monnoo Group owns 12 Textile units, Agricultural Farms, and extensive research units catering to various agricultural products. Operating within the Real Estate, Construction, and Technology sectors, the Izhar Group of Industries has solidified its position as a leading construction entity in Pakistan. With a robust track record of excellence, Izhar Group has successfully executed numerous significant construction projects. This combination of expertise and diversified industrial experience supports IMM RMC's positioning in the market. IMM RMC has successfully launched its first Real Estate Investment Trust (REIT) scheme, titled "IMM Project One Developmental REIT Scheme. The fund size is set at PKR 7bln. The contribution from Mr. Mazhar Iqbal would be PKR 3.5bln, while the remaining PKR 3.5bln would be collectively provided by Master Textile Mills Ltd, Mr. Sheraz Jehangir Monnoo, and Mr. Khizar Ayub Izhar, each by investing ~ PKR 1.167bln. The acquisition of land for "IMM Project One (Pvt) Ltd (hereinafter referred to as Special Purpose Vehicle (SPV)" is currently underway in a phased manner. The Project is located on land near Bahauddin Zakariya University, Multan. The land area for the project has increased to 807.9 acres. Approximately 438 acres (Land A) will be acquired through a cash outlay, while the remaining 369 acres (Land B) will be obtained by issuing files for developed land as compensation to the respective landowners. The SPV established for the project has already acquired approximately 148 acres out of the total 438 acres and has executed an agreement to sell for the remaining land. The IMM Project One Development REIT is fully self-financed through its installment-based cash flows, requiring no external borrowing beyond the initial PKR 7 billion equity injection. Total inflows of over PKR 90 billion are projected against outflows of about PKR 56 billion, ensuring strong liquidity and timely project execution. Revenue and dividend distributions align with IFRS 15, with returns materializing from Year 5 onward. This financial structure, combining land and equity contributions, lays the foundation for the successful launch of IMM Project One. The dedicated SPV structure for the project would enhance transparency and delineate responsibilities.
The assigned rating reflects RMC’s current stage of development, with a structured but evolving approach to project selection and risk management. Future performance will depend on the timely execution of planned projects.

About the Entity
IMM REIT Management Company Limited (“IMM RMC” or the “Company”) 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 SECP to carry out REIT Management Services as an NBFC. The majority of IMM RMC’s ownership resides with the Master Group through Mascon Private Limited a subsidiary Company of the Master Group of Companies holding ~50% shares of RMC. The remaining ~50% shares of the Company are held by i) Mr. Sheraz Jehangir Monnoo and ii) Mr. Khizar Ayub Izhar holding 25% shares each. The Board of IMM RMC comprises six experienced professionals including Mr. Rumman Arshad (CEO).