Karachi September 30 2021: The Centrepoint asset sale was completed in May 2021 and converted Company's unrealized revenue reserves into realized form enabling distribution out of the same, as per information provided by the company.
The sale proceeds allowed the Company to repay debt, invest and build its real estate investment portfolio, while providing some dividend.
One Hoshang, the premium residential development project is expected to start construction by the end of first quarter FY22. The extended time in receiving the Heritage and other regulatory approvals have resulted in this project being delayed. The development will be completed within three years from construction start.
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TPL Properties Selling Its Development Assets To TPL REIT Management Company: PSX
TTZ Phase 1, a high end Technology Park project is advancing well with detailed design phase. The company is aiming for this development to be licenced under the Special Technology Zone Authority as it aligns with its' objectives. Construction is scheduled to start at the end of 2021 with a two year construction period
The Third Project under development is a large 40 acres master planned mixed use development near Korangi Industrial Park. With several urban regeneration initiatives, this development will add significant value to TPL Properties. International firms are being selected for the master planning and Phase 1 will be launched in last quarter of FY 2022.
The company's wholly owned subsidiary, TPL RMC Ltd, (licensed by the SECP) is working towards the launch of Pakistan's first hybrid REIT Fund, which will invest in acquisition of land for development, development of real estate assets, and acquisition of yielding and underperforming real estate assets. TPL REIT Fund I will be restricted to investments in real estate assets located in Pakistan. Further, in order to attract foreign investment into the Fund and Pakistan, it is incorporating a Feeder Fund structure (based in an appropriate international jurisdiction) which will be managed by a fund management company in Abu Dhabi Global Market (ADGM), license for which has been applied for. The Company will own a strategic stake in TPL REIT Fund I after transferring the three projects under development to the fund to enable a faster and funded development to take place.
TPL Properties long term value creation will crystallize with the evolving business structure. TPL Properties, subsequent to the formation of TPL REIT Fund I, will have four core pillars as its business model. Firstly, it will own a significant portion of the REIT based on the contribution of land and project developed to date. This REIT will provide tax free dividends to The Company over the coming years. Secondly, it will continue to develop these three projects and more for which it will receive development fees. Thirdly, as owner of the RMC, it will receive dividends as the RMC receives management fees for REIT. Finally, it will continue to own TPL Property Management Services whereby more projects managed in the future will provide additional earnings to the Company.