PACRA Upgrades Entity Ratings of Imperium Hospitality (Private) Limited

Imperium Hospitality (Private) Limited ('IHPL’ or 'the Company') is principally committed towards the development of real estate ventures. Presently, the Company is solely involved in its first high rise real estate project, namely Imperium Tower. IHPL aims to pioneer a state-of-the-art corporate tower facility that is expected to become a landmark in the Lahore’s skyline. The ratings reflect Company’s emerging position in real estate sector of Pakistan underpinned by good sponsor’s profile – Monnoo Group of Industries. The group holds long-lived presence in diversified sectors of economy including textile, real estate, power, & agriculture. Considering current macroeconomic challenges; inflationary pressure, hiked interest rates, & rising cost of materials specifically steel and cement have led to a slowdown in the real estate industry. However, the government has taken several initiatives to boost the real estate sector, like the introduction of tax incentives, infrastructure development, & the establishment of regulatory bodies to oversee the sector. Imperium Tower occupies ~341,351 square feet of construction and consists of two distinct sections: Block A and Block B. Each block boasts four basement levels, a ground floor, and eighteen floors above ground. Marking a key milestone, Block A of Imperium Tower has been successfully completed and handed over to FFC (Fauji Fertilizer Company Limited), giving them full ownership of all associated rights and interests including proportionate right in property 49.74% equivalent to 3 Kanal, 14 Marlas of land and 169,790 square feet of constructed area. This transaction generated ~ PKR 3.7bln in revenue for the company during the 6MFY24. Block B of Imperium Tower is currently in the final stages of completion, undergoing meticulous finishing touches. It is anticipated to be fully ready and operational by April 2024, marking the culmination of an impressive development journey. Upon completion, IPHL will begin renting office space within this section. As the tower's construction has been a significant investment for the Company, requiring substantial financial resources, expertise, & project management skills. From the start of the project to execution and management; IHPL has outsourced a qualified team of professionals, comprised of a design development company, an architecture firm, independent project managers, construction consultants, & contractors to secure smooth flow of operations and timely completion. To facilitate the development and construction of the tower, the sponsors directly contributed PKR 1,314mln, which is a positive sign as outlined in the project's funding strategy.
The financial risk profile of the Company is demonstrated by its improved leveraging position which stood at ~60% by the end Dec-23 (June-23: ~85%). The ratings are dependent on the IHPL’s capacity to repay its borrowings through successful rental income generation from Block B.

About the Entity
Imperium Hospitality (Pvt.) Limited ('IHPL' or ‘the Company’) is a private limited concern incorporated in 2016. During 2019, the Company started its first real estate project with the name of Imperium Tower. It is currently involved in the construction of perfectly designed corporate tower comprising of 4 levels of basement, ground plus 18 floors, offering lettable corporate office spaces in commercial precinct of Gulberg, Lahore. The ownership of the Company majorly lies with Kaisar Shahzada (Pvt.) Limited (~99.998%) whereas, remaining minor stake (~0.002) resides equally with Mr. Sheraz Jehangir, Mr. Danish Kaisar, & Mr. Shahbaz Alam. Mr. Sheraz Jehangir (MD & CEO) is a seasoned business professional & holds 20+ years of experience. He is assisted by qualified team of professions.