PACRA assigns Initial rating to IMM Project One Development REIT Scheme

The assigned rating of "IMM Project One Developmental REIT Scheme" (or the "Fund") reflects the Fund’s early-stage development profile and the depth of experience brought by its sponsors—Master Textile Mills Limited, Monnoo family, and Izhar family. Izhar Monnoo Developers, a related-party development advisor to the Fund, has a well-established track record of successfully delivering large-scale residential schemes such as Dream Gardens Lahore (Phase I & II) and Dream Gardens Multan. The Fund will operate as a developmental REIT with a total size of PKR 7bln equity, contributed by strategic partners. The Fund will invest in real estate assets through a special purpose vehicle (SPV), ensuring adherence to governance standards and investor protection. The Fund will issue its Offering Document prior to seeking listing on the stock exchange, with the listing to be executed within three years of achieving financial close. The SPV, IMM Project One (Pvt) Limited, managed by IMM REIT Management Company Limited, comprises approximately 807.9 acres, which is strategically located in Multan, adjacent to Bahauddin Zakariya University, with direct access from Bosan Road and Canal Road. The land cost will be funded by investors' equity and advance receipts from the customers. While the land acquisition will be made in two portions: i) Land A and ii) Land B. Land A comprises 438 acres to be acquired through cash consideration, and Land B comprises 369 acres to be transferred through developed-file compensation, providing a structured and diversified acquisition framework for phased development. Currently, the Fund is focused on the acquisition of land A, and it has successfully acquired 150 acres, with agreements executed for the remaining area, supporting visibility on phased development and future inventory creation. This structured land-segregation strategy enables the Fund to balance immediate acquisition requirements with long-term development obligations, while maintaining financial flexibility. The sponsors’ extensive experience in real estate development, construction, and large-scale industrial operations reinforces the Fund’s ability to execute land procurement, infrastructure rollout, and sales delivery. Complemented by detailed legal documentation, regulatory alignment, certified valuation, and defined project milestones, the governance framework strengthens execution confidence. Furthermore, the Fund remains in an early-stage development phase—where execution timelines, market absorption, and regulatory compliance remain key sensitivities.
The NAV of the Fund is PKR 10. The project’s financial model remains entirely self-financed, structured around installment-based customer collections. Liquidity remains positive throughout the development cycle, with profit recognition aligned with IFRS 15. In accordance with the REIT Regulations, the Scheme will distribute at least 90% of its annual accounting income (excluding capital gains) to unitholders.
Rating movement will depend on timely land acquisition, effective project execution, and the Fund’s ability to sustain planned sales momentum and cash flow generation.

About the Entity
IMM REIT Management Company Limited, the management company of the Fund, 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 Dar (CEO).