PACRA assigns Initial entity rating to IMM REIT Management Company Limited

The assigned rating for IMM REIT Management Company Limited ("IMM RMC") 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. Some noteworthy achievements in the real estate sector include the successful completion of projects such as i) Dream Gardens Lahore, ii) Dream Gardens Multan, iii) Dream Avenue Lahore, and iv) Mannan Town Faisalabad. IMM REIT Management Company Limited (IMM RMC) is currently in the process of launching its first non-PPP Real Estate Investment Trust (REIT) scheme named "IMM Project One Developmental REIT Scheme" with an expected launch in the first quarter of 2024. The fund size subject to land acquisition strategy will range between PKR 3-7bln. A strategic partner Mr. Mazhar Iqbal would hold 50% of the units while the remaining would be collectively held by Master Textile Mills Ltd (a sister concern of Mascon Pvt Ltd), Mr. Sheraz Jehangir Monnoo, and Mr. Khizar Ayub Izhar. The acquisition of land for "IMM Project One (Pvt) Ltd (hereinafter referred to as Special Purpose Vehicle (SPV)" is currently underway in several phases. Out of the total land area of ~790 acres for the project, around ~421 acres would be acquired through a cash outlay. While ~369 acres would be obtained by issuing files against the developed land as consideration to the respective land owners. The Special Purpose Vehicle (SPV) designated for this project has successfully acquired ~143 acres (out of 421 acres). As per management representations, the acquisition of ~278 acres (out of 421 acres) from cash is expected to be completed by the end of May 2026. This financial structure, combining land and equity contributions, lays the foundation for the successful launch of IMM Project One. This phased approach to land acquisition ensures a strategic and efficient process for the development of "IMM Project One." The dedicated special purpose vehicle (SPV) structure for the project would enhance transparency and delineate responsibilities. The assigned rating takes into account the Company's notable competence in strategic project selection and its thorough approach to risk management practices.
Going forward, the successful completion of the REIT Projects will remain imperative to rating.

About the Entity
IMM REIT Management Company Limited (“IMM RMC” or the “Company”) was incorporated on 09-May-2022 as a private 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 directors (BoD) of IMM RMC comprises six experienced professionals including the CEO Mr. Rumman A. Dar.