PACRA Maintains Entity Ratings of Imperium Hospitality (Private) Limited

Imperium Hospitality (Private) Limited ("IHPL" or "the Company") is primarily dedicated to the development of real estate ventures. Currently, the Company is focused on its first high-rise real estate project, Imperium Tower. IHPL has constructed a state-of-the-art corporate tower facility, which has become a prominent landmark in Lahore’s skyline. The ratings reflect the Company’s growing position in Pakistan’s real estate sector, supported by the strong sponsor profile of Monnoo Group of Industries. The group has an established presence across multiple sectors, including textile, real estate, power, and agriculture. Previously, the country’s real estate sector faced challenges due to adverse macroeconomic conditions, including high inflation, elevated interest rates, and rising costs of materials, particularly steel and cement. However, the macroeconomic indicators have started to improve in 1HFY25, with expectations of a recovery in demand within the real estate sector. Imperium Tower spans ~341,351 square feet and comprises two distinct sections: Block A and Block B. Each block includes four basement levels, a ground floor, and eighteen floors above ground. Marking a significant milestone, Block A has been completed and handed over to Fauji Fertilizer Company Limited (FFC), granting them full ownership rights, including a proportionate land share of 49.74% (equivalent to 3 Kanal, 14 Marlas) and ~169,790 square feet of constructed area. This transaction generated ~PKR 3.7bln in revenue for the Company during FY24. Block B is in the final stages of completion, with meticulous finishing work underway. As per the latest management representation, it is expected to be fully ready for handover to prospective tenants at the beginning of the new fiscal year. Several lease agreements are currently in advanced negotiation stages and are expected to be realized soon. The construction of Imperium Tower has been a significant undertaking, requiring substantial financial resources, expertise, and project management capabilities. From project initiation to execution and management, IHPL has engaged a team of qualified professionals, including a design development company, an architecture firm, independent project managers, construction consultants, and contractors, ensuring smooth operations and timely completion. To support the tower’s development and construction, the sponsors have directly contributed ~PKR 1.9bln through equity and ~PKR 843mln as a subordinated loan. which is a positive indicator in line with the project's funding strategy. The Company’s financial risk profile has improved, as reflected in its reduced leverage position, which stood at approximately 30.3% by the end of Jun-24 (June-23: ~85%).
The ratings are dependent on IHPL’s ability to repay its borrowings through successful rental income generation from Block B. Therefore, the timely completion of Block B, coupled with achieving a sufficient occupancy level to generate steady rental income, will be crucial.

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. Imperium Hospitality (Private) Limited is entirely owned by the sponsoring family, with M/s Kaisar Shahzada (Private) Limited holding the largest stake of 36%. The remaining ownership is equally distributed among Mr. Danish Kaisar Monnoo, Mr. Sheraz Jehangir Monnoo, and Mr. Shahbaz Alam Monnoo, each holding 21% of the shares. Mr. Sheraz Jehangir (CEO & Director) is a seasoned business professional & holds 20+ years of experience. He is assisted by a qualified team of professionals.