PACRA Maintains Entity Ratings of BRB Properties Builders and Developers

BRB Properties Builders and Developers is committed towards the construction of their first real estate venture Oasis Park Residencia. The company has shown progress towards the construction of bungalows which are expected to be completed by June’2025 as per agreed terms with Sindh Building Control Authority (SBCA). Additionally, the company has been successful in selling out 90% of the total units with the aid of Zameen.com and through internal sales force. Revenue from the sale of bungalows is recognized to the stage of completion of the units at the end of the reporting period. As a result, during FY23 the Company reported revenue of PKR 1,691mln (FY22: PKR 1,263mln). The sales growth is evidence of the market acceptability of the project which is in return beneficial for the company in terms of creating their value in the real estate sector. The current inflationary environment with higher interest rates and rising cost of raw materials including steel and cement have led to a slowdown in the real estate sector. Furthermore, the ongoing political uncertainty and unstable economic environment has adversely affected the sector. As of November 2023, the Company has successfully completed 96% of the construction of the grey structure of the villas. Furthermore, the company has received approximately 87% of the outstanding receivables from the customers against the booked units. The cash flows are utilized to meet construction expenses during the period. Regarding future plans, the company has finalized architectural designs and obtained approvals for the construction of Hexagon Tower for commercial and residential use on the same land. The Company plans on formally launching the project once the economic conditions in the country stabilizes.
The timely completion of the project and the adequacy of cashflows remain crucial for the company. The ratings are dependent on the future projects that the company plans on undertaking along with timely collection from customers against sale of bungalows and any further borrowings that would affect the financial risk profile of the company.

About the Entity
BRB Properties Builders and Developers is a sole proprietorship owned by Mr. Khawaja Bilal Azam. The principal activity of the company is to invest, purchase, develop and built residential and commercial real estate projects. The company is situated in Karachi and is currently working towards its first project Oasis Park Residencia which started in 2018. The project involves the construction of 334 bungalows residential society spread over 24 acres of land located on main super highway, District Malir Karachi. Additionally, the company has plans to construct two high rise buildings for commercial and residential use on the same property in near future. Mr. Khawaja Bilal Azam is spearheading the operations along with a team of qualified professionals having requisite experience. The BoD consists of members from the sponsors family with Mr. Khawaja Bilal Azam acting as the Chairman. The organization has a lean structure with each department being headed by a competent resource.